During the economic downturn of 2008, state and local governments began to see energy efficiency as a way to save money. At the same time, the general public and the nation’s policymakers gained more awareness of issues such as global climate change, energy security and renewable energy, and have made energy independence an increasingly important priority. State and local governments are developing progressive programs and mandates for renewable energy and energy efficiency. The most effective programs recognize that all of their assets — such as well as outcomes — such as jobs, quality of life and lower energy costs — are part of an interconnected system. Let’s take a look at some of the innovative strategies that state and local governments have developed to maximize the use of local and renewable resources, promote jobs and economic growth, be more globally competitive, and ensure commercial and residential access to reliable, low-cost energy.
Reclaiming Lost Economic Value
Massachusetts has been very aggressive in its eff orts to reclaim the economivalue — estimated to be about $22 billion — lost from the state when its businesses and citizens use fossil fuels, which all come from outside the region.34 But instead of focusing solely on either environmental or economic issues, Massachusetts enacted a series of laws that together form the basis of a holistic, system-wide strategy for creating a clean energy economy. Legislation passed in 2008 mandates an 80 percent reduction in greenhouse gas emissions, creates a center for investment in clean energy companies and jobs, and provides more funds for energy efficiency programs and sustainable building.The state’s Green Communities initiative, funded through the federal State Energy Program (SEP), helps the state’s cities and towns maximize energy efficiency in public buildings, generate clean energy from renewable sources and manage rising energy costs.36 An institutional framework such as Green Communities provides the administrative management and sustainable funding required to empower its communities to be more energy efficient.
Another area where Massachusetts shows leadership is in the use of energy efficient resource standards (EERS), a binding requirement for utilities to implement energy efficient programs that save the equivalent of a percentage of annual sales. EERS mandates communicate the importance of energy efficiency to utility companies and require them to engage in long-term planning and investments in energy efficient programs. Massachusetts electricity EERS targets are 2.5 percent of sales, to increase to 2.6 by 2015; its natural gas target is 1.1, to increase to 1.15 by 2015.37 The states of Vermont, Rhode Island and Pennsylvania have also developed aggressive EERS targets.
More Efficient Use of Existing Resources
Oklahoma is a state rich with traditional energy resources. Not constrained by energy supply, the state is instead focused on energy efficiency and optimizing its energy system.Oklahoma wants to “stretch the value of a given unit of energy supplies” by optimizing the use of the energy resources that it has.
The Sooner State’s leaders don’t view energy as a disconnected, isolated resource. Oklahoma’s energy plan states: “While energy has historically been viewed as discrete fuels, in reality, energy is a system where the components must be optimized. New supplies and technologies provide the tools to optimize the system to produce clean, affordable, abundant, reliable, and sustainable energy. Improving, instead of replacing, the system enhances national security, grows the economy, and creates jobs, all while protecting the environment.”To that end, Oklahoma has dramatically increased its budget for electric and natural gas efficiency. The state has also rededicated itself to improving and enforcing building codes. In addition, it developed a plan that focuses on energy reduction in state buildings, and passed a new law that mandates state agencies and schools become 20 percent more energy efficient by the year 2020.
Energy Efficiency at the Local Level
Cities and counties have their own strategies for stimulating economic growth, ensuring environmental sustainability and improving quality of life. After Greensburg, Kan., was leveled by a tornado in 2007, the town was forced to reinvent itself. Instead of piecemeal reconstruction projects, leaders developed a plan to rebuild the town as a balanced system, “[a] truly sustainable community … that balances the economic, ecological, and social impacts of development.”Leaders decided to make the town a national model for green living by investing in renewable technologies and green building techniques that withstand tornadoes.
Greensburg rose from the ashes as a new town that generates as much electricity from renewable energy as it uses.Not all cities and communities start from the ground up. Acknowledging that its “goals of economic growth, environmental stewardship and fiscal responsibility are inextricably linked,” the city of San Jose, Calif., developed a systemic, 15-year Green Vision plan that integrates all of its strategic hard and soft assets, including jobs, energy, buildings, waste, water, development, vehicles, trees, streetlights and trails. Goals include reducing per capita energy use by 50 percent, diverting landfill waste to convert to energy, building 50 million square feet of green buildings and creating 25,000 clean technology jobs.
Some of the most exciting developments in energy policy and strategic planning are happening at the state and local level. Creative planning by states, cities and counties can result in innovative energy plans that create sustainable energy sources, save money and energy, improve economic development and enhance citizens’ quality of life.
