Advanced Energy Perspectives

Since the start of this year’s legislative sessions, Advanced Energy Economy has been tracking energy legislation across all 50 states, the District of Columbia, and the U.S. Congress through its online PowerSuite platform. PowerSuite provides policy tracking by policy professionals. In the process, we have identified several trends in how states are contemplating the future of their energy, transportation, and building sectors. The bills described in this post, which range from simply introduced to fully signed into law, by no means represent every bill in the country filed this year, but are rather indicative of the attention being devoted to each topic by lawmakers. What follows represents the top 10 state energy legislative issues of 2022.

On March 16, the New York Public Service Commission quietly adopted a significant advancement in rate design. It did so as a result of a long proceeding on standby and buyback rates, in which AEE argued that owners of distributed generation not eligible for net metering (such as standalone storage facilities and institutions with combined-heat-and-power systems) were being overcharged for the customer-specific components of those rates. While the PSC action seemingly addressed a technical matter, the impact is a big win for advanced energy in New York, as it will lead to new rates much more favorable for a range of distributed energy resources (DERs).

On April 8, New York Gov. Kathy Hochul agreed to a $220 billion state budget with the New York State Legislature that commits the state to deploying a fully zero-emission school bus fleet by 2035, thus positioning New York to become the first state in the nation to end the use of fossil fuel-powered school buses and provide 100% clean rides for students. Working in concert with partners and other advocates, AEE was deeply involved in building support for electrifying schools in both executive and legislative branches and takes pride in the nation-leading action taken by leaders in the Empire State. Now, the advanced energy industry, including many of AEE’s members, are poised to assist New York’s 950 school districts with a rapid transition to zero-emission school buses.

All eyes were focused on energy negotiations in Washington for the better part of 2021, but with less fanfare, advanced energy companies powered a record-breaking year for investment in the energy transition. BloombergNEF and the Business Council for Sustainable Energy’s 10^th annual Sustainable Energy in America 2022 Factbook released last week quantifies the industry’s progress with year-over-year data and insights on energy efficiency and renewables. The Factbook records new highs in the deployment of renewable power, battery storage, and electric transportation, despite lingering COVID setbacks and supply chain bottlenecks economy wide.

When it comes to energy policy, all eyes have been on Washington, D.C., over the past year. Meanwhile, with far less attention, the states continue to lead the way in our energy transition. Between figuring out how to put to work funds from last year’s federal infrastructure bill, carrying out their own mandates for clean energy, and prepping for an electric transportation future, states will remain the primary venue for building an advanced energy economy in 2022. Here are some of the trends AEE will be watching – and engaging in – this year.