- •Foreword
- •Table of contents
- •1. Executive summary
- •Overview
- •“Energy dominance” strategy
- •Deregulation
- •Energy infrastructure
- •Innovation
- •Power sector transition
- •Policy co-ordination
- •Energy security
- •Energy systems resilience
- •Key recommendations
- •2. General energy policy
- •Country overview
- •Supply and demand of energy
- •Primary energy supply
- •Energy production and self-sufficiency
- •Energy consumption
- •Energy trade
- •Institutions
- •“Energy dominance” strategy
- •Energy policies
- •Federal Power Act
- •Clean Air Act
- •National Environmental Policy Act
- •Natural Gas Act
- •Energy Policy and Conservation Act
- •Energy Policy Act of 2005
- •Energy Independence and Security Act
- •American Recovery and Reinvestment Act
- •Energy permitting and regulatory regimes
- •Energy pricing and taxation
- •Energy data
- •Assessment
- •Recommendations
- •3. Energy and climate change
- •Overview
- •Institutions
- •Climate change mitigation
- •Emissions targets
- •Federal policies and regulations
- •Power sector
- •Transportation sector
- •Oil and gas sector methane emissions and natural gas flaring
- •Regional, state and local policies
- •Regional Greenhouse Gas Initiative
- •California’s climate action plan
- •Other regional programmes
- •Adapting to climate change
- •Assessment
- •Recommendations
- •4. Energy efficiency
- •Overview
- •Institutional governance of energy efficiency policies
- •Transport sector
- •Energy consumption in the transport sector
- •Energy efficiency policies in the transport sector
- •Electric vehicles
- •Residential and commercial
- •Energy consumption in the buildings sector
- •Energy efficiency policies in the buildings sector
- •Tax credits
- •Building codes
- •Appliance and equipment standards
- •Co-generation
- •Federal buildings
- •Industry
- •Energy consumption in the industry sector
- •Energy efficiency policies in the industry sector
- •Demand response
- •Utility efficiency obligations
- •Assessment
- •Recommendations
- •5. Renewable energy
- •Overview
- •Supply and demand
- •Renewable energy in TPES
- •Electricity from renewable energy
- •Policies and measures
- •Federal tax credits
- •Public Utility Regulatory Policies Act
- •Renewable portfolio standards
- •Corporate tax policy
- •Trade policy
- •Net metering
- •Grid upgrades
- •Department of Energy initiatives
- •Solar PV
- •Grid Modernization Initiative
- •Hydropower Vision
- •Offshore wind
- •Battery storage
- •Renewable Fuel Standard
- •Biofuels tax credits
- •Low Carbon Fuel Standard
- •Assessment
- •Recommendations
- •6. Energy technology research, development and demonstration
- •Overview
- •Public spending on energy RD&D
- •Institutional framework
- •Energy RD&D programmes
- •Science and innovation programmes
- •National laboratories
- •Loan Programs Office
- •Advanced Research Projects Agency for Energy
- •Nuclear energy
- •Energy efficiency and renewable energy
- •Efficiency
- •Renewables
- •Transportation
- •Fossil energy
- •Office of Clean Coal and Carbon Management
- •Advanced fossil energy systems
- •Carbon capture, utilisation and storage
- •Electricity
- •Pathways to commercialisation
- •Technology-to-Market
- •Energy Investor Center
- •Technology Commercialization Fund
- •STEM
- •International collaborations
- •Assessment
- •Recommendations
- •Overview
- •Supply and demand
- •Crude oil production
- •Refined oil products
- •Trade: Imports and exports
- •Trade of crude oil
- •Trade of refined oil products
- •Oil demand
- •Increasing biofuels demand in the United States
- •Outlook of oil supply and demand
- •Prices and taxes
- •Institutions
- •Oil exploration policies
- •Oil exploration
- •Tax reform
- •Permitting and mineral rights
- •Infrastructure
- •Pipelines
- •Price differentials
- •Refining
- •Ports
- •Emergency response policy
- •Legislation and emergency response policy
- •National Emergency Strategy Organization
- •Oil emergency reserves
- •Storage locations
- •SPR modernisation programme, planned sales and commercial lease
- •Emergency response to supply disruptions
- •Impacts of hurricanes
- •Responses to hurricanes
- •Participation in IEA collective actions
- •Assessment
- •Oil upstream
- •Oil markets
- •Oil security
- •Recommendations
- •8. Natural gas
- •Overview
- •Supply and demand
- •Production
- •Consumption
- •Biogas
- •Supply and demand outlook
- •Trade: Imports and exports
- •Market structure
- •Price and taxes
- •Infrastructure
- •Gas pipeline networks
- •Ongoing projects in the Northeast and New England
- •Ongoing projects between the United States and Mexico
- •Recent regulatory developments related to the construction of energy projects
- •LNG terminals
- •Regulation
- •LNG developments
- •Storage
- •Gas flaring
- •Gas emergency response
- •Gas emergency policy
- •Gas emergency organisation: Roles and responsibilities
- •Gas emergency response measures
- •Strategic storage
- •Interruptible contracts
- •Demand restraint
- •Fuel switching
- •Assessment
- •Natural gas markets
- •Natural gas security
- •Recommendations
- •9. Electricity
- •Overview
- •Electricity supply and demand
- •Electricity generation and trade
- •Electricity consumption
- •Electricity system regulation
- •FERC
- •NERC
- •State regulators
- •The physical grid
- •Market structure
- •Wholesale electricity markets
- •Traditional vertically integrated utility bulk systems
- •ISOs and RTOs
- •Capacity markets
- •Energy Imbalance Market
- •Distribution system rates and competition
- •Ownership
- •Retail prices and taxation
- •Policies and regulations
- •Federal Power Act
- •Public Utilities Regulatory Policies Act
- •Energy Policy Act of 1992
- •FERC Orders 888 and 889
- •FERC Order 2000
- •Energy Policy Act of 2005
- •Electricity in the low-carbon transition
- •Federal environmental policy
- •State-level clean energy policies
- •Renewable portfolio standards
- •Zero-emissions credits
- •Net metering
- •System integration of renewables
- •Transmission
- •Demand response
- •Energy security
- •Grid reliability and resilience
- •NERC assessments
- •DOE and FERC efforts
- •Capacity market reforms
- •Other capacity mechanisms
- •Fuel security
- •Extreme weather
- •Cyberthreats
- •Emergency response
- •The DOE role
- •Assessment
- •Bulk power markets
- •Electricity reliability
- •Recommendations
- •10. Nuclear
- •Overview
- •Institutional oversight and regulation
- •The Nuclear Regulatory Commission
- •The Department of Energy
- •Operational fleet
- •Valuing low-carbon generation
- •Valuing resilience
- •New builds
- •V.C. Summer
- •Vogtle
- •SMRs and other advanced reactors
- •Nuclear fuel cycle
- •Interim storage and the Yucca Mountain repository
- •Production of enriched uranium
- •Accident tolerant fuels
- •Innovation, nuclear research, human resources, education
- •Versatile Test Reactor
- •Funding for nuclear innovation
- •Training nuclear scientists and engineers
- •Assessment
- •Recommendations
- •11. Coal
- •Overview
- •Supply and demand
- •Institutions
- •Policy and regulation
- •Coal mining
- •Environmental regulations for coal-fired power plants
- •Fuel security
- •Emissions reduction efforts for coal-fired generation
- •Refined coal
- •Small-scale coal plants
- •CCUS
- •Assessment
- •Recommendations
- •12. The resilience of US energy infrastructure
- •Overview
- •Definition of resilience
- •Institutional governance
- •Energy resilience policies
- •Incident emergency response
- •Exercises
- •Climate resilience
- •Energy production
- •Energy consumption
- •Energy infrastructure siting
- •Resilience in electricity
- •Resilience in oil and gas infrastructure
- •Upstream
- •Downstream
- •Midstream
- •Cybersecurity resilience
- •Assessment
- •Recommendations
- •ANNEX A: Organisations visited
- •Review criteria
- •Review team and preparation of the report
- •Organisation visited
- •ANNEX B: Energy balances and key statistical data
- •Footnotes to energy balances and key statistical data
- •ANNEX C: International Energy Agency “Shared Goals”
- •ANNEX D: Glossary and list of abbreviations
- •Acronyms and abbreviations
- •Units of measure
9. ELECTRICITY
(862 kilogrammes) of CO2/MWh for large generators and 2 000 pounds (907 kilogrammes) for smaller generators, which would not require CCS.
Beyond CO2, the EPA also reviewed existing regulations on the power sector for other pollutants, including nitrogen oxides (NOx), sulphur dioxide (SO2) and mercury. These regulations are primarily designed to combat fine particulate matter that contribute to smog, and raise the costs for coal-fired generation relative to other sources. While the EPA decided not to revisit NOx and SO2 regulations, in December 2018, it proposed a revised Supplemental Cost Finding for the Mercury and Air Toxics Standard, which would not change implementation of the existing rule, but would limit future regulatory action on hazardous air pollutants under Section 112 of the Clean Air Act. The EPA also finalised its revision of the 2015 coal ash rule for coal plants, which governs how power plants manage coal ash waste from burning coal. The new rule relaxes requirements for plant operators and gives states and the industry more flexibility in waste management.
State-level clean energy policies
Renewable portfolio standards
A number of US states have in place renewable portfolio standards (RPS), which require retail electricity providers to source a certain share of supply from qualified renewable sources. While emissions reduction goals are a driver of state RPS policies, they are also enacted to harness local energy resources, diversify the fuel mix and support local economic activity. Twenty-nine states plus the District of Columbia currently have mandatory RPS policies in place (eight states have voluntary targets), which have been an important driver of renewables expansions in the United States (Lawrence Berkeley National Laboratory, 2019). RPS plans have been particularly important in driving renewable energy growth in the Northeast, Mid-Atlantic and West.
Since their adoption, many states have raised their RPS targets to encourage more uptake of renewables. More recently, in 2019, several states made significant changes to strengthen their RPS programmes, including Colorado, District of Columbia, Maryland, Maine, New Mexico, Nevada, New York and Washington. California, Hawaii, New York and Washington have the most ambitious legislated targets; they require that 100% of electricity come from clean sources by 2045 (2040, in the case of New York), with Hawaii’s policy specifically requiring 100% from renewables (Utility Dive, 2019b). New Jersey’s governor signed an executive order in 2018 for a 100% clean energy (renewables and nuclear) target by 2050. In January 2019, the District of Columbia increased its RPS target to 100% by 2032, while Nevada in April 2019 passed legislation that targets 100% of carbon-free electricity by 2050.
Table 9.2 RPS across US states
State |
Renewable portfolio target |
Target year |
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Iowa |
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105 MW |
1999 |
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Montana |
15% |
2015 |
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Texas |
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5 880 MW |
2015 |
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Wisconsin |
10% |
2015 |
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Maine |
84% |
2030 |
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Washington |
15% |
2020 |
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IEA. All rights reserved.
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9. ELECTRICITY |
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State |
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Renewable portfolio target |
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Target year |
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Oregon |
50% |
2040 |
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Colorado |
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30% |
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2020 |
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New Mexico |
80% |
2040 |
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Maryland |
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50% |
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2030 |
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Michigan |
15% |
2021 |
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Missouri |
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15% |
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2021 |
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Pennsylvania |
18% |
2021 |
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North Carolina |
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12.5% |
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2021 |
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Nevada |
50% |
2030 |
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Arizona |
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15% |
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2025 |
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Minnesota |
26.5% |
2025 |
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New Hampshire |
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25.2% |
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2025 |
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Illinois |
25% |
2026 |
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Ohio |
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8.5% |
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2026 |
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Delaware |
25% |
2026 |
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California |
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60% |
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2030 |
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New York |
70% |
2030 |
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Massachusetts |
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41.1% |
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2030 |
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Connecticut |
44% |
2030 |
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New Jersey |
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54.1% |
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2031 |
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Vermont |
75% |
2032 |
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Washington, DC |
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100% |
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2032 |
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Rhode Island |
38.5% |
2035 |
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Hawaii |
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100% |
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2045 |
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Source: Lawrence Berkeley National Laboratory (2019), U.S. Renewables Portfolio Standards: 2019 Annual Status Update, http://eta-publications.lbl.gov/sites/default/files/rps_annual_status_update-2019_edition.pdf.
Zero-emissions credits
In addition to renewables targets, a few states have also provided support to nuclear power in the form of zero-emissions credits (ZECs). Though nuclear power has accounted for roughly a fifth of US electricity generation in recent history, competition from low-cost natural gas and renewables, combined with mounting costs for nuclear plant upgrades, is presenting challenges for both portions of the existing fleet of nuclear plants and new projects. Viewed by certain states as a critical source of baseload zeroemissions power, dwindling nuclear capacity – if not replaced by renewables – will result in growing emissions from the electricity sector. As a result, some states facing nuclear closures have intervened to keep plants in service (also see Chapter 10, “Nuclear”). Most notably, in 2016, New York and Illinois enacted policies that allow nuclear plants to qualify for ZECs that help the states meet their clean energy standards. In New York, the policy provided support to three nuclear plants – the James A. Fitzpatrick, Nine Mile Point and Ginna plants – while the Three Mile Island nuclear facility is still slated for
197
ENERGY SECURITY
IEA. All rights reserved.