Energy policy refers to a set of decisions made by governments regarding their energy use and development. Policies may include decarbonization targets, energy security concerns, resource diversification needs, technology export potential potential and economic costs as some examples of measures taken by policy makers.
Governments can support R&D of technologies that reduce environmental impacts or increase energy efficiency, and create emergency preparedness strategies and reserves in case unexpected supply disruptions arise.
Renewable Energy
Renewable energy offers an alternative approach to climate change and other environmental concerns, but requires careful planning in order to minimize impact on communities, wildlands and wildlife. Furthermore, effective policies must encourage innovation and manufacturing processes.
Renewables’ success depends on a national electric grid that reliably delivers clean electricity, and one tool used to achieve this is a feed-in tariff, which ensures renewable energy producers a connection to the grid as well as structured payments at rates above market.
States can promote renewables through state-wide renewable portfolio standards and public benefits funds created from charges on electric utility bills (e.g., system benefits charge). For more information on these and other policy options, see the State Energy and Environment Guide to Action or the EPA Data on State Clean Energy Programs; these data could also be used as the foundation of an comprehensive national energy policy to foster a renewables-based economy.
Fossil Fuels
Fossil fuels such as coal, oil and natural gas contribute to air pollution that contributes to asthma attacks, cancer, heart disease and other serious health conditions. Their combustion releases toxic substances such as sulfate oxides, nitrogen oxides and particulates into the environment that contributes to global warming, acid rain, eutrophication, ocean dead zones as well as greenhouse gases which contribute to global warming.
Extraction, transportation and refining of fossil fuels can result in accidental oil spills that damage homes, kill wildlife and disrupt fishing and recreation activities. Furthermore, such spills contaminate water supplies while potentially closing beaches, parks and fisheries.
The most effective approach for reducing methane emissions is through regulatory reform of the oil and gas industry to enhance infrastructure standards, practices, equipment for capturing fugitive methane capture as well as raising flaring efficiency standards. This policy mechanism can also be integrated into carbon pricing policies like carbon taxes or cap-and-trade programs; additionally severance taxes on federal land could both lower emissions while creating revenue for communities.
Energy Efficiency
Energy efficiency refers to using less energy for accomplishing similar work, a goal achieved through technologies such as LED lighting, building automation systems and energy-efficiency appliance standards and codes.
Energy efficiency initiatives not only save consumers money but also create jobs through manufacturing and installation of the new technologies. Furthermore, this employment increases local economies as workers spend their earnings within their community.
States can encourage energy efficiency adoption through lead by example programs for state buildings and fleets, setting efficiency goals as part of their state energy plan, encouraging utilities to implement energy efficiency resource plans and supporting legislation and regulations that create cost-effective financing pathways.
State energy policies should include revenue decoupling to provide utilities with the incentive they need to pursue efficiency investments that reduce greenhouse gas emissions, increase system reliability, enhance grid security and pave a pathway towards carbon free electricity production. This approach could create cost-effective pathways towards carbon free power production.
Energy Security
Energy security refers to a state’s ability to provide its citizens with affordable, reliable and clean energy supplies; including an energy infrastructure to deliver this energy. Energy is an integral part of both national defense and the economy as well as providing essential services like public health and water provision. With increasing threats such as cyberattacks or changing natural hazards threatening energy supplies ensuring its security will continue to remain a top priority.
Fossil fuels currently provide energy security, with oil reserves, natural gas supplies, and coal reserves providing steady electricity generation at any given moment. Yet this reliance is risky given war, terrorism, climate change and unstable political systems can wreak havoc with production and distribution systems of fossil fuels.
Clean energy transition provides an opportunity to restore global energy security through diversifying sources, strengthening local economies, and reducing pollution – but achieving that requires a policy framework which prevents regulatory processes being used for political gain.