4. Create a renewable energy standard. State governments can require that electric power generators get some of their power supply from clean, renewable sources. These standards, commonly known as Renewable Portfolio Standards (RPSs) promote the development of alternative energy sources, such as wind, solar, and biofuels, and can also be powerful economic development tools.

Why renewable energy standards are a federalism issue:
Significance:
Renewable sources of energy have a powerful advantage over other sorts of fuels currently used to power electric plants: they do not create dangerous emissions like mercury and carbon dioxide. Electrical power plants are a major contributor to the nation's CO2 emissions, for example.

State role:
According to the Pew Center on Global Climate Change, more than twenty states have adopted renewable portfolio standards, requiring or encouraging utilities to produce up to 25% of their power from renewable sources over the next ten to fifteen years. Arizona state officials recently approved a dramatic increase in the state's RPS requirements, from 1.1% by 2007 to 15% by 2025. New Mexico, Maryland, Rhode Island, and Pennsylvania's RPS laws are available by clicking on the state's name. Colorado voters instituted their RPS by ballot initiative in 2004, and the amendment language is available here. (These links were gathered by the Pew Center on Global Climate Change.)

In its 2005 session, the Washington legislature passed two renewable energy bills, available here and here. These bills are not RPS bills, because they do not mandate or recommend that a certain percentage of power come from renewable sources. Instead, one bill provides credits for homeowners, businesses, or local governments that generate solar or wind power, while another gives tax breaks to manufacturers and marketers of solar energy equipment. A U.S. Department of Energy newsletter has more details about the laws.

In June 2005, the governor of Vermont signed a bill that requires Vermont's retail energy suppliers to rely on renewable sources, or renewable energy credits, to meet increases in demand for electricity over the next six years. Also, the Western Governor's Association is working on a multi-state clean energy proposal that includes wind, solar, and biomass.

Many states have approached RPS as an economic development strategy. Texas, for example, has committed to increasing wind power so that it can be a net energy exporter and keep the state's energy sector strong. The state's new RPS law calls for doubling renewal power generation over the next decade.The Comptroller of the state of New York has estimated that meeting the state's ambitious RPS goal (25% by 2013) will create almost 16,000 direct jobs and 43,000 jobs overall.

Federal role:
The states and the federal government have complementary roles in encouraging renewable energy. The federal government provides research funds and tax incentives, while the states set deadlines for utilities to start using renewable energy.

Critical resources:

The Center for Policy Alternatives has model RPS legislation, available here. The State Environmental Resource Center also has a policy package on renewable energy.

Additional information about renewable energy initiatives, including but not limited to RPS laws, is available from many sources. The National Conference of State Legislatures has a very nice overview of state renewable energy strategies, including dozens of useful links. The Database of State Incentives for Renewable Energy lists tax incentives and other programs available at the state and federal level. The New Rules Project has a list of elements of good RPS laws, and Defenders of Wildlife analyzes the impact of different kinds of renewable energy on wildlife habitat and offers ways to mitigate the impacts.

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If you know of other state and local governments pursuing similar policies, or different policies to reach the same goal, please let us know by sending an email to redefiningfederalism@communityrights.org.

To read about how federalism concerns are playing out in the debate about policy responses to global warming, please visit our blog, www.warminglaw.com

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