State Energy Policy 2017 NASUCA Mid-Year Meeting

1. State Energy Policy 2017 NASUCA Mid-Year Meeting Glen Andersen NCSL Energy Program June 5, 2017

2. About NCSL • Bipartisan organization • Serves 7,383 legislators and 30,000+ legislative staff across 50 states, as well as commonwealths and territories • Services • Research on policy topics of interest to the state legislators • Technical assistance and training • Opportunities for policymakers to exchange ideas • Lobbying at the federal level for states' interests

3. Three Types of Legislatures Full-time, ($29,697-$104,118), large staff Hybrid, ($7,200-$61,380) Part-time, ($100-$20,000), small staff

4. State Legislatures Pre-election 2016 Republican - 30 Democrat - 12 Split - 7 Nonpartisan

5. State Legislatures 2017 Republican - 32 Democrat - 14 Split - 3 Nonpartisan - 1

6. State Governments 2017 Republican- 24 Democrat - 7 Divided - 18 Nonpartisan - 1

7. Legislative Action Shapes the Electric System • Energy Efficiency • Renewable Energy Standards • Planning • Siting • Distributed Generation • Restructuring • Resiliency and Reliability • Biofuels and EV Policy

8. 2016 Energy Legislation http://www.ncsl.org/issues-research/energyhome/energy-environment-legislation-tracking-database.aspx

9. Rising Costs Low electricity demand growth Sustained low natural gas prices State and Federal renewable energy incentives Market Challenges for Baseload Electricity

10. Twenty-six states have introduced 94 measures in 2017 Primary Focus: Shift economics for nuclear generation & advanced technologies Emergency response & preparedness Moratoriums Interim storage or a permanent repository Nuclear Energy Source: NCSL, May 2017

11. Zero emissions credits Nuclear portfolio standards State-mandated PPAs Carbon tax Tax incentives State acts as “caretaker” Recent State Action

12. ZECs: Payment for every MWh of carbon-free electricity New York PSC: Aug. 1, 2016 Illinois General Assembly: Dec. 1, 2016 New Jersey S.B. 3061 & A.B. 4698 (pending) Ohio S.B. 128 & H.B. 178 (pending, but unlikely) Pennsylvania? Zero emissions credits (ZECs)

13. Renewable Energy

14. Renewable Portfolio Standards Michigan – 10% to 15% by 2021 Illinois – to 25% by 2025 Hawaii – 40% by 2030 to 100% by 2050 2015 California – 33% by 2020 to 50% by 2030 SB 100 would increase to 100% by 2045 Maryland – 20% by 2022 to 25% by 2020 Rhode Island –14.5% by 2019 to 38.5% by 2035 Oregon – 50% by 2040 Ohio – RPS resumed in 2016

15. An Electric Grid Revolution Drives State Policy Dramatic Renewable Energy Growth Falling solar costs State policy Customer, industry and investor preferences ‘Smart Grid’ technologies Energy Storage Distributed generation growth Net metering Discussions in many states Flat Electricity Demand Growth GTM Research and Solar Electric Industries Association

16. The Distributed Energy Debate • Fixed and variable cost recovery • Equity and Incentives • Solar customers still connected to grid • Cost shifting? • Benefits of solar? • How to integrate solar • Impacts on reliability

17. 2016 Policy Action on Rate Design, Net Metering and Solar Ownership Source: N.C. Clean Energy Technology Center

18. Conclusions • State legislators play an increasingly large role in shaping the nation’s energy system • The large amount of state legislative activity on electricity issues is expected to continue • “Clean Energy” is a major consideration in policy and industry decision-making

19. Contact Information Glen Andersen, Energy Program Director Phone: 303-856-1341 glen.andersen@ncsl.org Additional Resources NCSL Energy and Environment Legistlation Database NCSL Energy Program