Early 2006 States News Archives

Archives: Latest News | [1] Early 2007 [2] | [1] Late 2006 | [3] 2005 | [4] 2004 | [5] 2003 [6]

Ethanol Mandate Signed into Law in Louisiana

On June 12, 2006, Louisiana Governor Kathleen Blanco signed into law a mandate that ethanol-blended fuels be sold in Louisiana. This legislation was passed in order to foster biofuel production in the state, provide an alternative market for farmers, and improve the environment. The new law requires that ethanol produced from domestically grown feedstock or other biomass material account for 2 percent of the total gasoline sold in the state and that 2 percent of the total diesel sold in the state be biodiesel. The mandate will go into effect six months after there are 50 million gallons of ethanol in annual production or 10 million gallons of biodiesel in the state, unless the Louisiana Commission on Weights and Measures determines there is not sufficient supply or distribution capabilities in the state.

Press Release [7]
Map of States with Mandates and Incentives Promoting Biofuels [8]

Western Governors Pass Resolution Calling for GHG Emission Reductions

On June 11, 2006, the Western Governors Association unanimously passed a resolution formally acknowledging that climate change is occurring and that it is influenced by human activities. The resolution calls on western states and cities to take action to reduce GHG emissions while meeting growing energy demand and expresses support for regional and national programs to reduce GHG emissions in a cost-effective manner. The governors also adopted recommendations from their Clean and Diversified Energy Advisory Committee and adopted policy resolutions related to clean energy and transportation fuels. On the clean energy front, the governors set the following targets: an additional 30,000 megawatts of clean energy by 2015; an increase in energy efficiency of 20 percent by 2020; and reliable transmission for the next 25 years. On the transportation fuels front, the governors called for policies to advance more fuel-efficient vehicles and alternative fuels.

WGA Policy Resolution on Global Climate Change [9]
WGA Policy Resolution on Clean and Diversified Energy [10]
WGA Policy Resolution on Transportation Fuels [11]

South Carolina Passes Clean Vehicles and Alternative Fuels Legislation

On June 1, 2006, South Carolina Governor Mark Sanford signed H 4312 into law, creating a state-level tax credit for individuals purchasing clean vehicles. The bill takes effect immediately by amending the Code of Laws of South Carolina to include the tax credit, which applies for taxable years beginning after 2005. The credit equals 20 percent of the federal tax credit, and applies to new hybrid, fuel cell, alternative fuel, and lean burn technology vehicles. South Carolina also recently passed an ethanol and biodiesel production tax credit, which gives producers a 20 cent per gallon credit during the first 5 years of production for projects initiated between 2007 and 2009. The legislation, S 1245, also gives tax credits to solar heating and cooling, and landfill gas systems. Originally vetoed by the Governor on June 13, 2006, the veto was overridden by the Senate the following day, June 14, 2006.

Legislation on H 4312 [12]
Legislation on S 1245 [13]

Iowa Governor Signs Package of Bills to Strengthen Renewable Energy and Bio-Energy Industries

On May 30, 2006, Iowa Governor Tom Vilsack signed into law a package of bills designed to strengthen Iowa’s bio-energy and other renewable energy industries. The bills offer a variety of incentives to expand the use of E-85 (a mixture of 85% ethanol and 15% gasoline), including a 25-cent-per-gallon tax break for every gallon of E85 sold, and set a standard requiring that 25 percent of the petroleum used in the formulation of gasoline be replaced by biofuel by 2020. The measures also create a sales tax exemption for the purchase of solar energy equipment, expand an existing tax credit for wind energy production, and give utilities a tax credit for using soy-based fluids in electric transformers.

Press Release [14]

Alaska Legislature Unanimously Passes Climate Legislation

On May 9, 2006 the Alaska Legislature passed HCR 30. With unanimous votes in both the House and in the Senate, the bill creates an Alaska Climate Impact Assessment Commission. The Commission is charged with assessing the impacts and costs of climate change to Alaska, as well as developing recommendations for preventative measures that can be implemented by Alaskan communities and governments. The Commission will consist of eleven members, including four public officials and seven appointed members who are knowledgeable about the impacts of climate change on Alaska. The Commission, required to meet eight times, will present preliminary findings to the legislature on March 1, 2007, followed by its final report on January 10, 2008. Because of its nature as strictly a legislative action, funded with legislative monies, the bill does not need the Governor’s approval.

Legislation on HCR 30 [15]
Map of States with Climate Change Commissions and Advisory Groups [16]

Ten States File Lawsuit Against New Fuel Economy Standards for SUVs

On May 2, 2006, ten states led by California Attorney General Bill Lockyer filed a lawsuit against the National Highway Traffic Safety Administration for failing to address greenhouse gas emissions in its new fuel economy standards for S.U.V. and light trucks. The states, California, Connecticut, Maine, Massachusetts, New Jersey, New Mexico, New York, Oregon, Rhode Island, and Vermont, were joined by the District of Columbia and New York City. The new rules, which will be in effect from 2008 through 2011, are considerably less stringent than California and nine other states’ limits on greenhouse gas emissions. The lawsuit also states that the new standards will have negative implication for air quality and the climate, because the weight-based standards will create incentives to build larger, less fuel-efficient vehicles.

Press Release [17]

Ten States Sue EPA Over Global Warming

On April 27, 2006, ten states, including New York, California, Connecticut, Maine, Massachusetts, New Mexico, Oregon, Rhode Island, Vermont, and Wisconsin, filed a lawsuit against the U.S. Environmental Protection Agency for its decision not to regulate carbon dioxide emissions as a contributor to global warming. The states, led by New York Attorney General Eliot Spitzer and joined by the cities of Washington, D.C. and New York and by environmental groups, urged the federal government to require tighter controls on GHG emissions from new power plants. EPA spokeswoman Jennifer Wood said the agency will review all options and make an informed decision on how to proceed.

Press Release [18]

Montana Governor forms climate change committee

The Montana Department of Environmental Quality (DEQ) announced the members of its Climate Change Advisory Council on April 26, 2006. Last December, Governor Brian Schweitzer directed the head of the Montana DEQ to form the group. The Advisory Group will recommend strategies to reduce and sequester greenhouse gas emissions, and to promote economic growth, for example, through energy efficiency and renewable energy investments. The members of the group include representatives of the energy industry, environmental groups, and government. The council will hold its first meeting in July 2006 and is expected to develop a Climate Change Action Plan by July 2007.

Press Release [19]
Map of States with Climate Change Commissions and Advisory Groups [16]

New Jersey Board of Public Utilities Ups Renewable Portfolio Standard

On April 12, 2006, the New Jersey Board of Public Utilities approved new regulations that strengthen the State’s Renewable Portfolio Standard (RPS). This BPU decision requires utilities to increase the percentage of electricity that they produce from renewable energy sources from 4% in 2008 up to 20% by 2020. In general the RPS can be met through a variety of renewables, but solar photovoltaic systems are specifically required to increase to 2 percent by 2020. The RPS allows the trading of Renewable Energy Certificates for compliance. The new regulations are expected to reduce emissions of carbon dioxide by 7.65 million tons and of nitrogen oxides by over 14 thousand tons.

Press Release [20]
Map of States with Renewable Portfolio Standards [21]

Wisconsin Governor Signs ‘Green Buildings’ Executive Order

On April 11, 2006, Wisconsin Governor Jim Doyle signed an executive order requiring all state government buildings to conform to “green building” standards. The order, which applies to both existing buildings and future construction, directs the WI Department of Administration to establish standards based on the U.S. Green Building Council LEED certification. LEED emphasizes state-of-the-art strategies for sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality. Over the next few years, the state will determine how best to meet these standards in all of the state government buildings. Through the implementation of these standards, the state expects to reduce its energy bill up to 30 percent. This executive order also requires that overall energy usage in state government buildings be reduced by 10 percent by 2008 and 20 percent by 2010.

Press Release [22]
Map of States with Green Building Standards for State Buildings [23]

California Climate Action Team Report Calls for Reduction Strategies

On April 3, 2006, the California Climate Action Team released its recommendations to Governor Arnold Schwarzenegger and the California legislature. The Climate Action Team identified nine key recommendations to meet the Governor's emission reduction targets, including a multi-sector, market-based system that includes trading, mandatory reporting of GHG emissions reporting, an aggressive alternative fuels program and a coordinated investment strategy for the development of emission reduction technologies. The report contains 46 specific emission reduction strategies that also include energy efficiency programs, new automotive emission reduction measures, the development of alternative fuels, and forest conservation measures. The report was completed at the request of Governor Schwarzenegger, who signed an executive order on June 1, 2005 directing state officials to develop plans that would reduce California's greenhouse gas emissions by 11% below current levels by 2010, 25% by 2020, and 80% by 2050. According to the report, these emission reduction goals are achievable and beneficial to California's economy.

Press Release [24]
California Climate Action Team Report [25]

Maryland To Join the Regional Greenhouse Gas Initiative

Maryland Governor Robert L. Ehrlich Jr. signed into law the Healthy Air Act on April 6, 2006. The bill requires the Governor to include the state in the northeast Regional Greenhouse Gas Initiative (RGGI) by June 30, 2007. The state will also study the reliability and cost implications of joining RGGI. Maryland is the eighth state to join the program, which establishes a carbon dioxide emissions cap and trade program for power plants in the region. These emissions are capped at current levels in 2009, and then reduced 10% by 2019. The Healthy Air Act also mandates reductions in nitrogen oxide, sulfur dioxide, and mercury emissions from coal-fired electric power plants.

Press Release [26]
Pew Center RGGI information [27]
RGGI website [28]

Wisconsin Ups Renewable Portfolio Standard

Wisconsin Governor Jim Doyle substantially increased the state’s Renewable Portfolio standard by signing Senate Bill 459, the Energy Efficiency and Renewables Act, on March 21, 2006. The revised RPS requires utilities to produce 10 percent of their electricity from renewable energy sources by 2015. The Act increases funding to local governments for energy efficiency projects and requires Wisconsin utilities to directly support energy efficiency programs (ensuring that $85 million a year is spent to promote energy efficiency). It also requires the state to support the research and development of agricultural digesters and to launch a pilot residential heating program using leftover corn plants. Finally, the legislation requires the state to purchase 20 percent of the energy for the six largest state agencies from renewable sources by 2011, to include higher energy efficiency standards in building codes, and to create specific energy standards for state building projects.

Press Release [29]
Map of States with Renewable Portfolio Standards [21]

Arizona Sets New Standards for Renewable Energy

The Arizona Corporation Commission introduced new Renewable Energy Standards (formerly known as the Environmental Portfolio Standard) on February 27, 2006. The new rules require regulated electric utilities to generate 15 percent of their energy from renewable resources by 2025. The Commission’s Renewable Energy Standards specify what technologies qualify and allow for the addition of new technologies as they become feasible. Customers will face a slight higher Environmental Portfolio Surcharge to offset the cost of compliance; this surcharge will be capped at $1.05 per month for residential customers. If a utility does not meet the standard, however, the Commission may assess a penalty for non-compliance. The new rules also require a growing percentage of the total resource portfolio to come from distributed generation.

Press Release [30]
Map of States with Renewable Portfolio Standards
[21]

California Public Utilities Commission Adopts GHG Emissions Cap

On February 16, 2006, the California Public Utilities Commission (CPUC) unanimously decided to establish a cap on greenhouse gas emissions. The cap will initially cover electricity retailers, and will include natural gas utilities over the longer term. The CPUC’s decision follows Governor Schwarzenegger’s announcement of GHG reduction targets last June and is consistent with the recommendations included in the California Climate Action Team’s recent draft report. The CPUC plans to define the implementation phase through a public process, and preference will be given to flexible compliance options such as offsets, trading, banking, and borrowing. All power purchase agreements signed by the utilities will require the supplier to register its emissions with the California Climate Action Registry and sales of excess allowances outside the state will be allowed. Costs and benefits of the framework that emerges in the implementation phase will be evaluated by CPUC.

Press Release [31]

New Mexico Joins Chicago Climate Exchange

New Mexico became the first state to enroll in the Chicago Climate Change Exchange (CCX), the only carbon emissions cap and trade scheme currently active in the U.S. Members of CCX enter contractual agreements to cut their emissions. Depending on their performance, they can sell, bank, or purchase emission credits, which are traded daily over the Internet. Members of CCX include companies such as IBM, Du Pont, and Ford Motor Co. and cities such as Chicago, Oakland, and Boulder. The New Mexico state government will reduce its emissions 4% by 2006 and 6% by 2010. The state‘s entry into CCX is consistent with Governor Bill Richardson’s GHG emission reduction targets for the state. In June 2005 Governor Richardson signed an executive order setting statewide commitments to reduce New Mexico’s total greenhouse gas emissions to 2000 levels by 2012, 10 percent below those levels by 2020, and 75 percent below 2000 levels by 2050.

Press Release [32]

Arizona and New Mexico Governors launch Southwest Climate Change Initiative

Concerned about the potential impacts of climate change in the region, Arizona Governor Janet Napolitano and New Mexico Governor Bill Richardson signed an agreement to create the Southwest Climate Change Initiative on February 28, 2006. The two states will collaborate through their respective Climate Change Advisory Groups, to identify options for reducing greenhouse gas emissions and promoting climate change mitigation, energy efficient technologies and clean energy sources. The Governors expect that these actions to address climate change will also spur economic growth. Under the Southwest Climate Change Initiative, Arizona and New Mexico will also advocate for regional and national climate policies.

Press Releases:
Arizona [33] (pdf)
New Mexico [34]
Map of Regional Initiatives [35]

Midwest Legislators Tackle Climate and Clean Energy

On February 7, 2006, a bi-partisan group of state legislators throughout the Midwest announced their commitment to address climate and clean energy in their states. These legislators from Illinois, Iowa, Michigan, Minnesota, Ohio and Wisconsin, have introduced various pieces of legislation to promote renewable energy, energy efficiency, vehicle emissions, and greenhouse gas registries. The legislators are also working to encourage coal gasification and carbon sequestration, a key issue for Midwestern states that rely heavily on coal-fired generation. The legislators are working with the National Caucus of Environmental Legislators to coordinate their actions. NCEL is a non-partisan organization of legislators committed to protecting the environment.

Press Release [36]

Illinois Establishes Agricultural Carbon Credit Program

To promote environmental protection and economic opportunities for farmers, the Illinois Environmental Protection Agency instituted the Illinois Conservation and Climate Initiative (ICCI) on January 26, 2006. ICCI is a voluntary program awarding farmers carbon offset credits for greenhouse gas (GHG) sequestration practices such as conservation tillage, planting grasses and trees and capturing methane from animal operations. After third-party verification of the offsets, credits will be sold to the Chicago Climate Exchange (CCX) through the nonprofit Delta Institute. The Chicago Climate Exchange is a market for trading greenhouse gas emission credits between members who have voluntarily adopted GHG emission reduction commitments. The Illinois Environmental Protection Agency and Department of Natural Resources will manage outreach and education programs to inform Illinois farmers about this opportunity to create value through agricultural carbon management.

Press Release [37]