Advanced Energy Perspectives

In odd-numbered years, the Texas Legislature meets for 140 days starting on the second Tuesday in January to consider the state’s regular business, with the main objective of passing a two-year budget. This year, as always, bills introduced with potential impact on the state’s energy system covered a wide range of topics, both positive and negative for advanced energy. This session, the Texas Advanced Energy Business Alliance (TAEBA) was directly engaged with or closely watching approximately 80 bills. When the Legislature gaveled out on Memorial Day, the outcomes for advanced energy were net positive, with tax incentives for large-scale renewable energy projects preserved and onerous fees on electric vehicles avoided. And while the Legislature didn’t pass a bill on ownership of battery storage, that issue goes back to the Public Utility Commission of Texas (PUCT) with some clear indications of legislative preference.  Here are the highlights from a very busy legislative session.

Corporate renewable energy transactions have accelerated rapidly since companies first recognized and seized upon the advantages of low-cost, abundant resources like solar and wind, reaching a record 6.5 GW contracted in 2018. But the 15 GW of commercial and industrial (C&I) customer deals signed since 2014 aren’t spread evenly across the country. In fact, 16 states have no C&I renewable energy projects operational or in development, and another 10 states have fewer than 50 MW (or less than 1% of the total). While resource potential plays a role, it is far from the whole story; policies that facilitate corporate procurement to drive renewable energy development are also key. Which means that the 26 states that currently account for less than 10% of the market can play catch-up. Our recent guide from the Advanced Energy Buyers Group shows how.

For years, Virginia’s leading investor-owned utility, Dominion, has lagged behind its peers when it comes to investments in energy efficiency (EE). According to the American Council for an Energy Efficient Economy (ACEEE), in 2017 Dominion ranked 50th out of 51 large utilities in EE, narrowly avoiding last place. Those days may be at an end following a stunning decision by the Commonwealth’s State Corporation Commission (SCC) earlier this month approving in full the programs – and budget – for greatly expanded efficiency investments for homes and businesses.

It has been an action packed few months in transportation electrification as legislative sessions have been in full swing. We have seen some good, some bad, and some ugly, but ultimately, as sessions start to wind down, the electric vehicle (EV) industry is walking away with some major wins. In Michigan, we saw a major charging infrastructure program approved. In Colorado, new legislation removed barriers to EV charging station deployment and extended tax credits for EV purchases. Down in the southwest, Nevada’s legislature has passed bills that incentivize the adoption of electric school buses by school districts and ease weight restrictions on heavy-duty electric vehicles. Next door in California, we got assurance that a new rulemaking is not going to hold up utility requests for approval of EV infrastructure plans. Meanwhile, a bill introduced in Pennsylvania is making that state look like the next one that could become EV friendly. These actions are all part of an accelerating trend toward vehicle electrification in states across the country.

The Indiana General Assembly finished its legislative work in the late hours of April 24, capping a significant session for advanced energy. Although constitutionally obligated to adjourn sine die by April 29, lawmakers wrapped things up a few days early. With the National Rifle Association hosting its national meeting in Indianapolis, hotel rooms were hard to come by, so lawmakers had extra incentive to finish up. But the shortened session didn’t keep the advanced energy industry from claiming several successes, as legislation to provide additional market opportunities were passed while proposals to significantly impede the industry by protecting coal plants from replacement by advanced energy technologies were stopped. Here is Indiana AEE’s scorecard on this year’s session.