By: DSIRE Insight Team
With 32 state legislatures having adjourned their 2021 sessions, the dust is starting to settle on a very active year for state lawmakers. The 18 remaining states are still actively engaged in considering energy legislation, and governors in 12 of the 32 adjourned states still have time to sign or veto pending legislation, so DSIRE Insight staff will remain busy for the foreseeable future. A total of approximately 859 bills related to distributed solar, grid modernization, and electric vehicles were introduced during 2021 with 103 becoming law in 33 states.
Solar, Grid Modernization, & Electric Vehicle Bills Enacted in 2021
Distributed Solar
As of mid-June 2021, state lawmakers have introduced 155 bills related to net metering, community solar, and third-party ownership, 19 of which have been enacted. An additional 6 bills have passed at least one chamber. While some of the approved bills made relatively small amendments to state law, other bills made significant changes to open new market opportunities for distributed solar.
A suite of bills enacted in Maryland increase the aggregate capacity limit for net metering in the state, authorize meter aggregation in net metering for local governments, and allow community solar participants to retain their subscription when they change their address. Lawmakers in New Mexico established a community solar program in the state, while the Washington legislature authorized the Utilities and Transportation Commission to approve discounts for low-income customers participating in community solar. West Virginia, meanwhile, legalized the use of third-party power purchase agreements in the state.
Grid Modernization
As of mid-June 2021, state lawmakers have introduced 339 bills related to grid modernization, energy storage, and regulatory reform, 38 of which have been enacted. An additional 32 bills have passed at least one chamber. Virginia had the busiest legislative session by far, enacting a whopping 12 bills related energy storage and grid modernization. Among the new laws are sales tax and property tax incentives for energy storage, a directive for 100% carbon-free electricity by 2040, and the establishment of the Virginia Solar Energy Development and Energy Storage Authority to further development of these resources.
Another hot topic among state legislatures this year has been utility business model reform, and wholesale markets specifically. Nevada legislators passed a bill requiring the state to join a regional transmission organization (RTO) by 2030, while the Oregon Legislative Assembly enacted a bill initiating a study of the benefits, opportunities, and challenges posed by the development or expansion of an RTO in the state. Connecticut lawmakers also passed notable legislation establishing a 1,000 MW energy storage target, to be achieved by December 31, 2030.
Electric Vehicles
As of mid-June 2021, state lawmakers have introduced 462 bills related to the electrification of transportation, 59 of which have been enacted. An additional 54 bills have passed at least one chamber. As with the other technology categories, Maryland and Virginia had productive legislative sessions for electric vehicles, each enacting 6 bills. Among Virginia’s enacted legislation are bills creating rebate and grant programs for electric vehicles.
Other states also adopted meaningful legislation though, including Arkansas, which reduced its annual registration fee for hybrid vehicles, exempted vehicles registered to military service members from the annual registration fee, and established an EV Infrastructure Grant Program for Level 2 and DC fast charging facilities. Kansas, North Dakota, and South Carolina, meanwhile, clarified that electric vehicle charging stations are not public utilities and not subject to regulation by their respective state regulatory commissions. South Carolina’s legislation also establishes a Joint Committee on the Electrification of Transportation, which is to study and make recommendations regarding transportation electrification in the state.
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