So with states once again representing the major driver for renewable energy, how can they keep the momentum going at a time when federal enthusiasm is at its lowest level in years? The key, according to a new report from the Brookings Institution, is for states to focus not just on project-level deployment, but to shift some funds toward support broader sustainable economic goals that foster the clean energy economy from the ground up.
And there are still a fair amount of funds to work with on the state level, as the below map illustrates:
What do “broader sustainable economic goals” mean exactly?
Historically, states with clean energy funds have focused expenditures on rebates, direct loans or performance-based incentives in order to encourage development of commercial and residential projects. The funds are raised through electricity surcharges, carbon auctions, utility penalties for not meeting clean energy targets, issuing bonds, and a variety of other methods.
These funds are found in 20 states and represent about $500 million of per year in revenues to support renewable energy and efficiency. They’re extraordinarily important tools for encouraging project activity — ultimately helping ratepayers and businesses invest in projects themselves. But they don’t always help create the “bottom-up” solutions that help multiply the economic impact, say analysts at the Brookings Institution:
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