State innovations in the development and implementation of clean energy programs have received national attention with the announcement of the 2020 State Leadership in Clean Energy Award winners. Presented by the Clean Energy State Alliance (CESA), the awards recognize state and municipal programs’ accomplishments in the clean energy field.

The majority staff of the House Select Committee on the Climate Crisis released a “roadmap” this week for the U.S. to achieve net zero emissions by 2050 and net negative emissions through the rest of the century. The plan says these climate goals can be achieved while growing the economy and improving public health.

The National Renewable Energy Laboratory (NREL) this week issued a solicitation for Phase II of its Sustainable Technology Partnerships (STEP) initiative. Phase I of STEP was created in 1994 as a pilot project.

STEP I offered states matching funds to gain access to NREL expertise. During phase I, 14 contracts totaling over $3 million were awarded. Projects focused on several technologies, including wind, biofuels, and alternative fuels.

A trio of plans focused on economic development at the state level were released this month. Noting that it is at an economic crossroads and facing serious challenges, Maine’s Department of Economic and Community Development has issued a new 10-year economic development strategy for the state. Massachusetts has also proposed a new economic development plan, focusing on four key areas, while a new report in Maryland is targeting clean energy as an opportunity for the state to invest in the future.

Maine’s plan

Clean energy innovation provides an opportunity for state-level policymakers and other stakeholders to expand economic opportunities and increase the impact of federal activity on climate and energy while also creating local economic development opportunities, according to a new report.

When Gov. Janet Mills addressed the United Nations General Assembly on Sept. 23, it was the first time a sitting governor of Maine has been asked to address the body. She had been invited as part of her participation in the UN Climate Action Summit 2019, and has made tackling climate change and embracing renewable energy key priorities of her administration. She is not the only governor stepping into the role where the federal government has backed out.

A trio of reports from the U.S. Department of Energy showed a continued upward trend in wind energy capacity and employment in 2018, as the cost per megawatt (MW) continued to drop due to larger and more efficient turbines. However, the possible elimination of federal tax incentives could slow the long-term growth of wind power, the report cautioned.

Although uncertainty and fear about the state’s fiscal situation continue to grow, New York’s 2021 budget stands strong in its commitment to deliver a green economy and resilient communities, preserve natural ecosystems and ensure access to clean drinking water. The State of New York has recently approved its budget for the fiscal year of 2021, which includes investments focusing on environmental resilience, conservation, green energy, and carbon-free transportation.

The Clean Energy States Alliance (CESA) released a report detailing the benefits, obstacles and importance of working with under-resourced communities to facilitate access to solar energy. The report, Solar with Justice, provides a detailed set of recommendations for successfully providing solar technology to low- and moderate-income areas.

Voters on both coasts may be asked to approve funding this year to help combat the challenges of climate change. Governors in both New York and California are proposing measures to tackle environmental issues, with New York Gov. Andrew Cuomo launching a “Restore Mother Nature Act,” which his office is calling the nation’s most aggressive program for habitat restoration and flood reduction, and California Gov. Gavin Newsom is proposing a climate budget that would invest $12.5 billion over the next five years.

Countries participating in the COP28 climate summit agreed this week to call for "transitioning away from fossil fuels in energy systems…”  Earlier this year, researchers at Nature Communications said a full transition from fossil fuels could displace 1.7 million fossil fuel workers in the United States and an even greater number on the global scale.

The U.S. Department of Energy (DOE) has released three 2023 annual reports showing that wind power is one of the fastest growing and lowest cost sources of electricity in America and is poised for rapid growth. DOE reports that wind energy provided 10% of total electricity nationwide with wind making up more than 60% of Iowa’s power and over 40% in Kansas, Oklahoma, and South Dakota. New utility-scale land-based wind generation capacity added in 2022 was the equivalent of powering 2.5 million American homes.

The Appalachian Regional Commission (ARC) recently awarded new grants totaling over $16.4 million to boost green energy manufacturing and workforce development through its Appalachian Regional Initiative for Stronger Economies (ARISE) funding opportunity.

The U.S. Environmental Protection Agency has announced its selections for $20 billion in grant awards under two competitions within the $27 billion Greenhouse Gas Reduction Fund (GGRF).

The Internal Revenue Service (IRS) has released its final rules, as required by the Inflation Reduction Act, to make many clean energy tax credits transferable (able to be sold to a third party) or available for elective pay (a direct payment to the credit holder). Both rules may help expand investment in clean energy by providing mechanisms that get capital to the project’s developer immediately, even if the developer is a nonprofit or public entity that would never have paid any taxes on the project.

The U.S.

As noted in our separate overview, the 25-page American Jobs Plan provides goals, highlights and proposals, but also raises questions about how proposals would be implemented and even exactly how much money would be spent.

The U.S. Department of Energy announced a request for information (RFI) to help inform the creation of a new Clean Energy Manufacturing Institute focused on industrial decarbonization.

Near the end of 2020, Congress passed the FY 2021 defense authorization (overriding a presidential veto) and folded multiple policy bills into the joint appropriations and coronavirus relief bill. This legislation includes new authorizations for semiconductor research facilities, clean and renewable energy innovation, and new studies of assets for critical research areas.

Innovation-related policies within the National Defense Authorization Act (NDAA) for FY 2021 include the following:

The clean energy sector has continued to feel the economic strain brought on by the COVID-19 pandemic, with many businesses citing the need for additional federal assistance to prevent future employee layoffs and furloughs.

The U.S. Environmental Protection Agency (EPA) has announced initial guidance on the design of the Greenhouse Gas Reduction Fund (GGRF) program, created under the Inflation Reduction Act. EPA published two Federal Assistance Listings outlining key parameters of the grant competitions that will ultimately award nearly $27 billion to leverage private capital for clean energy and clean air investments across the country.

The U.S. Treasury Department announced that the government will begin taking applications May 31 for the first $4 billion of the $10 billion Qualifying Advanced Energy Project Credit program and tax break for solar-and-wind projects in low-income communities.

In a move to strengthen the domestic manufacturing of batteries for electric vehicles (EVs), the U.S. Department of Energy (DOE), announced $2.8 billion for 20 companies in 12 states to extract and process battery materials and manufacture components while creating good-paying jobs.

The U.S. Department of Energy’s (DOE) Loan Program Office (LPO) has announced a conditional loan commitment of $2 billion to Redwood Materials for the construction and expansion of a battery materials campus in McCarran, Nevada.

While the Appalachian region began the 21st century by expanding the reaches of its fossil fuel industries, clean energy development and carbon emission reductions are not yet out of reach for Pennsylvania, Ohio and West Virginia. A set of reports developed by the University of Massachusetts’ Political Economy Research Institute (PERI) present opportunities available to these states for the advancement of clean energy technologies within the region while also detailing the economic and employment benefits of potential climate stabilization programs.