Congress has at last responded to the climate crisis — now the action moves to the states
For state officials, opportunity has been knocking for years. Now it’s banging on their doors.
This is the opportunity to become leaders in the clean energy economy and reap its many benefits — whether it’s building innovative industries around clean technology and sustainable business, launching legions of well-paying jobs, improving air quality and public health or bringing energy cost-savings to businesses and households alike.
Over the last decade, several states have already moved to seize this chance. California, Washington, Massachusetts, New York, New Jersey, Illinois and others are aggressively building out a clean energy economy through robust anti-pollution goals and clean energy investments that have put them at the forefront of U.S. climate policy. It’s been a vital demonstration of leadership on climate action, especially as the federal government languished for too long. But it has also been smart economic development policy, putting the states in prime position to support new industries and deliver for their residents and businesses.
Now that the federal government has at last joined the party by passing the Inflation Reduction Act, state governments have every incentive to increase their own ambitions and leverage the financial and technical support offered by the historic package.
The IRA is a $370 billion national investment in everything from clean power energy and transmission lines to electric vehicle supply chains, innovative home appliances, new industrial processes and sustainable farming practices. How states respond to its passage will help determine whether we will meet our national climate goals — and whether the states themselves are leaving money on the table or positioning themselves to realize the biggest rewards of the shift to a clean energy economy.
State policymakers are essential to ensuring the IRA meets its vast potential.
First, the new law includes a number of investments that the states must deploy themselves. These include billions of dollars for state-run programs to help consumers make energy efficiency improvements, strengthen conservation programs, establish clean energy and pollution reduction plans for rural and disadvantaged communities, and develop more ambitious standards to reduce pollution from buildings and technology. States owe it to themselves to accept and use these funds, and to ask for technical support to ensure the resources are deployed in the most effective, fair and forward-looking manner possible.
Additionally, many of the larger-scale investments in the IRA will require states’ help to facilitate their success. Governors, state legislatures, utility regulators, and other policymakers must establish a policy environment that harnesses the federal law. This will include making prudent decisions about permitting, siting and energy resources that allow projects to move forward quickly but equitably, while signaling to industry that their state is open for business.
Finally, states must take up the mantle of the IRA. While the IRA is expected to help the U.S. achieve a 40 percent reduction in climate pollution by 2030, it does not fully meet the national goal of 50 percent. Making up the difference will require more action at all levels of government. And with the new federal investments creating even stronger tailwinds, leading states now have plenty of reason to increase their ambition even more. States that have lagged behind can now confidently move to make up ground by adopting strong climate targets and clean energy policies.
This work isn’t just about growing the clean energy industry. Increasingly, businesses across all sectors want to invest in places that make it easier to access clean energy and zero-emissions transportation options, so they can meet their own climate goals and control their costs. That’s why so many companies fought for and supported the IRA — more than 2,900 businesses of all sizes, representing every industry and totaling more than 400 million global employees, advocated for the package of federal investments — and why they continue to push for strong state policies across the U.S.
Given the polarization of politics over the last decade, it may be hard to imagine some states taking strong climate action today. But economic growth is a bipartisan goal. As the IRA takes hold and its investments surge across the country, it will be far more difficult to imagine states failing to capitalize on what promises to be one of the most game-changing and innovative industrial periods in U.S. history.
Alli Gold Roberts is the senior director of state policy at the sustainability nonprofit Ceres.
Source: TEST FEED1
