Blog by Dawone Robinson and Kit Kennedy, NRDC
States must once again lead on climate solutions in the face of a challenging federal landscape.
The United States stands at a critical junction on the road to a clean energy future, and states must decide for themselves how to forge ahead. Against the backdrop of the Trump administration continuing to throw up every conceivable climate and clean energy roadblock, many states are still forging ahead on climate progress. Virginia, for example, is re-upping its commitment to a multistate approach to lower carbon emissions, while Illinois recently enshrined into law one of the largest clean energy investments in state history that is also projected to save Illinoisans more than $13 billion over the next two decades.
At the same time, there are also concerning signs that some state decision-makers may be wavering. As Americans face mounting economic challenges due to inflation driven by energy prices and the rising costs of essential goods and services, some state leaders are becoming more cautious about championing strong climate policy because of concerns about affordability. Others have even stepped back from climate commitments.
These actions are shortsighted. Creative policy solutions exist to help individual states create their own paths to move forward on climate and clean energy progress while meeting the moment by being responsive to today’s changing electricity landscape and political concerns. These paths may differ across states and regions, but there’s one option that should not be considered on this journey: We should not turn back.
Federal roadblocks
Nonsensically, at a time when the country is experiencing spiking electricity demand, the Trump administration has been relentless in its attempts to stymie the growth of the clean energy sources that are the most affordable and scalable. For example, the administration tried pausing $5 billion worth of funds to spur electric vehicle (EV) charging nationwide-before a court order forced the funding to proceed. The administration was, however, successful in repealing more than $500 billion in funding that would have supported clean energy projects in cities and states all over the country. And at the behest of the president, Congress repealed or weakened major portions of the Inflation Reduction Act, which passed under the last administration in order to spur clean energy development across the United States.
The list goes on, but the point is clear: The current federal government is committed to climate sabotage, leading to higher electricity prices, growing supply shortages, and more air pollution for Americans. This is putting more pressure on states to carry the baton of climate leadership.
Compounding the situation is the indirect effect the current economy has on expanding clean energy. Sustained inflation and the U.S. tariff policy have created uncertainty in global markets and driven up the costs of energy infrastructure, while historic load growth from data centers are straining the power grid and complicating compliance with state climate goals.
Both the Trump administration’s war on clean energy and these economic factors make it more challenging—but not impossible—for states to make progress. So, how are states responding to the challenge?
Two steps forward, one step back
Notwithstanding these headwinds, some state leaders are slowing down before having crossed the finish line. For example, New York governor Kathy Hochul recently weakened the state’s signature climate law, the Climate Leadership and Community Protection Act (CLCPA). This was a highly disappointing and ill-advised move given the seriousness of the climate challenge before us and the surging energy prices consumers are facing, which are two elements the CLCPA stood poised to alleviate by accelerating electrification of transportation and buildings, to be powered by new local renewables creating thousands of union jobs.
Indeed, recent studies by NRDC and partners have identified concrete ways for state leaders to remain on the offensive on climate policy while simultaneously addressing affordability in New York and states across the country. These studies have shown that customers can save hundreds of dollars per year on their electric bill as the state adopts policies to decarbonize our economy and help meet climate goals.
Examples of state leadership
It’s welcome news that many states continue to advance pragmatic solutions to decarbonize our economy and help keep the country on the right track, and there are promising signs that progress isn’t slowing down:
- In Colorado, the Public Service Commission recently approved Xcel Energy’s plan to invest more than $1 billion to support critical grid upgrades for electrification of vehicles, homes, and appliances.
- Last year, state regulators approved 29 large load tariff cases to shield ratepayers from excess costs associated with load growth from data centers, with nearly 80 such cases pending across 36 states.
- The Illinois Commerce Commission recently approved a substantial increase in low-income energy efficiency resources, new investments in clean energy workforce training programs, and significant expansion of heat pumps to electrify multifamily buildings.
State legislatures also continue to advance climate solutions:
- The Clean Reliable Grid and Affordability Act in Illinois sets a new battery storage procurement target of 3 gigawatts by 2030 that could power 500,000 homes during power outages. In addition, the state significantly strengthened its energy efficiency goals for utilities and tripled its low-income efficiency program spending.
- In Virginia, new laws will curb emissions from the transportation sector by incentivizing the buildout of EV charging stations statewide and reduce energy usage in low-income households by providing no-cost fuel switching from oil and propane to electric heat pumps.
- Washington State will begin a phasedown of dangerous hydrofluorocarbons, otherwise known as climate super pollutants, which are commonly used as heating and cooling agents in air conditioners and refrigerators.
- California and other states in the West authorized an integrated West-wide electricity market that will increase the use of renewable energy, while saving customers costs and improving the reliability of the grid.
Each of these victories occurred within the last 12 months or so, and they are in addition to the strong climate laws and regulations that have already been on the books that cities and states continue to implement.
Meeting the moment
We can remain on the right path by crafting solutions that expand carbon free technologies, put downward pressure on electric rates, and invest in the infrastructure needed to rapidly scale clean energy. States can, and must:
- Remain committed to long-term and interim greenhouse gas reduction targets and invest in the needed infrastructure to scale renewables and electrification in a timely manner;
- Tackle load growth challenges by requiring data centers to bring their own clean energy online and shield consumers from paying excess costs through regulatory proceedings,
- Right-size utilities’ return on equity to ensure that customers are paying for just and fair costs of utility service;
- Expand community access to renewable energy and infrastructure for the electrification of vehicles and buildings, especially in under-served areas;
- Double-down on energy efficiency investments in homes and increase weatherization programs for residents, particularly low- and moderate-income households, which will reduce heating and cooling costs for years to come and address critical health and safety concerns.
Now is not the time to backtrack on climate. We can build clean energy and maintain an ambitious climate policy while addressing the challenges that lie ahead. Let’s keep putting one foot in front of the other as we continue on this journey towards a clean energy future.
This blog has been sourced from the official website of NRDC and can be accessed here. It has been slightly edited.