Net metering is a practice that encourages consumer investment in on-site electric generators - typically small-scale, renewable energy technologies. When electricity is being generated and none is being consumed, net metering typically allows customer/generators to spin their meter backwards, in effect paying the customer/generator the retail rate for the electricity they generate but don't immediately consume. If a customer generates more electricity than they consume over a period of time, they are typically paid for that net excess generation (NEG) at the utility's avoided cost, or the wholesale rate. Two states, Minnesota and Wisconsin, stand out from the crowd because their net metering rules allow participants to be paid the retail rate for the net excess electricity they generate for each billing cycle. Some states like New Jersey and Colorado allow projects up to 2 MW to use net metering. More

With new laws, many states are giving municipalities the power to overcome one of the biggest barriers to renewable energy and energy efficiency - financing.  With no upfront costts and payments that stick with the property, these new laws let cities bond for dollars to improve homes and businesses, with property owners paying back the investment through long-term property tax assessments.  

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With state enabling legislation, cities and counties are being given the authority to establish municipal financing programs for clean energy and energy efficiency investments in their communities. Commonly referred to as property assessed clean energy (PACE) financing, it allows homeowners and businesses to implement dramatic improvements in efficiency and/or renewable energy and repay those investments over a long-term via a special property tax assessment or via a utility bill.

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Community choice, or aggregation, will create community pools of electricity large enough to command leverage on the market, and with sufficient legal authority and financial flexibility to demand contracts from energy suppliers that satisfy local economic and environmental goals. In short, it places authority in the hands of those who will feel the impact of their decisions, making investment in renewable electricity much more likely. More

Vermont, Oregon, Gainesville, FL, and the Canadian province of Ontario have recently adopted feed-in tariffs for renewable energy, allowing any prospective renewable energy producer will get a guaranteed connection to the grid, a long term contract to sell their power, and a fixed price sufficient to recover their costs plus a reasonable profit. We believe that feed-in tariffs could turbocharge state level renewable electricity standards, reduce costs, and spread the economic benefits across many more project owners. More

With the adoption of smart policies, the revolution in our transportation sector can generate an equally profound revolution in our electricity sector. More

If a proliferation of small-scale power plants serves the interests of the general community, cities and counties should include this concept as an element in their general plans and zoning ordinances. More

The conversion of biomass into ethanol and biodiesel provides farmers an additional market for their crops. Over the years, many federal and state rules have been developed to promote biofuels production for use in industry and reformulated gasoline. While this page does not include an exhaustive list of ethanol incentives, the rules on this page are unique in that they encourage ethanol and biodiesel production on a small scale. A decentralized, rural biofuels industry tends to favor a greater number of farmers over a wider area. Production credits for smaller facilities also promotes the formation of farmer-owned cooperatives that further increase returns to farmers. More

Here find are rules related to taxation of wind energy projects. We highlight those that establish a fair revenue stream to local communities that are hosting renewable energy projects but not too high so that wind energy projects are not able to move forward.  Key to the successful development of wind energy projects is the support of the local communities that surround the project and one way to do that is providing those communities with financial benefits. More

Funding commitments for low-income energy programs is a critical component of a sound energy policy. Typically, low-income energy programs are focused on helping families pay their energy bills. In many cases there is also a component of the program that targets energy-efficiency improvements for low-income households. Overall, funding for low income households held firm or modestly increased after electric restructuring in the 1990s, although in many cases the before and after comparison is misleading because utilities decreased their spending on low income households significantly between 1993 and 1998. More

New Jersey was first state in the country to ban large tractor-trailers from its state roads and highways. The restriction, went into effect in July 1999, confined large trucks (more than 102 inches wide) that were not doing business in the state to interstate highways and a system of major highways and connector roads. Other cities have begun charging increased fees for vehicles that have larger environmental impacts. More

A Renewable Portfolio Standard (RPS) ensures that a minimum amount of renewable energy is included in the portfolio of electricity resources serving a state or country, and -- by increasing the required amount over time -- the RPS can put the electricity industry on a path toward increasing sustainability. More

Mercury is a neurotoxin that accumulates in the food chain and can damage the brain, spinal cord, kidneys and liver. It has been linked to attention deficit disorder in children, and is particularly hazardous to developing fetuses and young children. Poison control centers and emergency rooms took 18,000 calls in 1998 because of broken mercury fever thermometers. Coal plants are big contributors to mercury pollution and have been targeted for rules to reduce emissions from their operation. More

Electric utilities are in the business of selling electricity. And even though most utility sponsored energy conservation programs reward the utility handsomely for saving electricity, the lure of selling more and more is overpowering. A performance-based ratemaking (PBR) tariff or decoupling policy can help eliminate this problem by rewarding utilities for saving energy and providing good service rather than selling more kWhs. More

Recognizing the benefits that small-scale and locally-owned wind projects can have, in 2005 Minnesota lawmakers enacted legislation requiring all of the state's electric utilities to establish Community Based Energy Development (C-BED) tariffs. The key aspect of the C-BED tariff is higher payments in the first 10 years of a power purchase contract. The only other state to enact such a law is Nebraska. More

Emissions reduction efforts to address the issue of climate change focus on two primary greenhouse gases: CO2 and methane. CO2 is released when fossil fuels - oil, coal and natural gas - are burned to power our cars, produce electricity or heat our buildings. Methane is emitted in urban areas when garbage and waste products decompose, primarily in landfills. Local and state governments can play a key role because they directly influence and control many of the activities that produce these emissions. Decisions about land use and development, investments in public transit, energy-efficient building codes, waste reduction and recycling programs all affect local air quality and living standards as well as the global climate. More

As climate change initiatives and renewable energy standards are adopted at both the local and state level across the country, solar energy technologies are getting more focused attention by policymakers. Below are a selection of rules that target efforts to enhance solar energy development - both thermal and electric (photovoltaics).  Solar power is likely to become the "fuel" for our transportation sector as we move toward a future with electric vehicles. More

Minimum blends of biodiesel and ethanol in petroleum-based fuels are required in order to be sold within the city and requirements that city-owned vehicles maximize use of renewable fuels.  Cities that may copy this approach should consider broadening the definition of renewable fuels to include renewable electricity used for electric vehicles. More

Green pricing requires a few customers to pay a substantial premium for relatively little power. A much better way for consumers to increase the supply of renewable energy is to exercise "green citizenship." If a significant majority of the customers of a given utility vote for green energy, the utility can purchase a larger amount of renewables and spread the costs over its entire customer base. Often 10 times the amount of green electricity can be purchased at a fraction of the cost for an individual household. More

Energy efficiency is a clearly demonstrated, cost-effective means to meet future electricity needs. States that implemented electric restructuring have set up policies to finance energy-efficiency improvements for residents and businesses. Regulated states have been moving toward policies that use to require a certain amount of expenditures on efficiency by utilities toward policies that require a certain amount of energy savings. More

In the era of electric restructuring customers were given the right to choose which company supplies them with their electricity. In order for consumers to make sound, smart choices about a power supplier they need to know how each electric provider's power is generated and what impacts that power production has on the environment.  Many states that have deregulated their electric power sector also mandated that power providers provide detailed information on the specifics of how their power is generated and transmitted. This is known as "electricity disclosure" or "environmental disclosure". Of the states that have enacted disclosure requirements, Illinois' disclosure law is one of the best. More

In the early 20th century electricity generation and transmission technologies supported the idea that "big is better." As a result, regulatory rules encouraged the construction of centralized power plants and long distribution lines. In the 1990s the technological dynamic was reversed. Small power plants located closer to the customer were become increasingly competitive. This has occurred at the same time as most states, many cities, and the U.S. Congress are rewriting the rules that govern our electricity system. These interconnection rules (i.e. codes, standards, regulations, statutes) will encourage electricity customers to also become electricity producers. More