In the United States, environmental policy is dynamic and characterized by ongoing shifts. Both federal and state green policies take center stage in 2024, with a focus on:
- Clean energy transition
- Carbon sequestration
- Federal agency involvement
Substantial investments and private support drives progress toward climate goals, with an emphasis on wind and solar projects. As the U.S. distances itself from fossil fuels, state-level initiatives are pivotal in shaping a more sustainable future. This article explores the landscape of environmental policy across the United States.
Federal Green Policies in 2024
Climate emerged as a key priority for the Biden administration in the aftermath of President Trump, who removed many protections put in place by the Environmental Protection Agency (EPA.) The Biden administration is committed to preserving environmental protections and increasing climate resiliency. The administration has implemented green policies through:
- Tax benefits
- Green energy infrastructure
- Job creation around climate resiliency
With these measures, the Administration aims to bolster green infrastructure, provide job opportunities, and improve income attainment.
Inflation Reduction Act (IRA)
The IRA incentivizes large organizations to lower their greenhouse gas (GHG) emission footprints. This includes companies, educational institutions, and others. Organizations are also incentivized to accelerate their transition to clean energy sources with tax credits awarded following the completion of transition measures. These tax credit incentives are already being offered as of January 2023, and will continue into the start of 2025.
The IRA also offers clean energy tax credits to organizations that transition to clean energy in specific areas where environmental impacts are at higher rates. These include:
- Low-income communities
- Reservations and Native Land
- Low-income residential building projects
Historically, these communities have experienced intentional disinvestment in key infrastructure. They also tend to be in areas most impacted by climate change, so there is a growing need for climate resiliency within these communities.
The measures set forth by the IRA have not been fully implemented yet. There remain aspects of the law that Americans can look forward to. Starting in 2025, both non-entity taxpayers and organizations can take advantage of a clean energy production tax credit. Taxpayers and organizations alike will be able to benefit from committing to a yearly GHG emission rate of zero. This is part of the overall goal of the legislation to phase out U.S. greenhouse gas emissions going forward.
Additional Federal Green Policies
The U.S. Senate has introduced S.3416, the Climate Change Resiliency Fund for America Act of 2023. This bill would authorize the Department of the Treasury to issue up to $1 billion in climate change obligations (e.g., bonds) in a fiscal year. It would also establish a Climate Change Advisory Commission to guide the federal government in enacting effective green policy. The Commission would provide recommendations, update guidelines, and review the most cost-effective investments. The bill is currently headed for committee. Senate members are hopeful for continued conversation surrounding the legislation.
State Green Policies in 2024
There’s an immense number of federal funding pathways available to states under the IRA. At Plural, we’ve seen an increase in energy-related policies in nearly every active state legislature.
Carbon Capture and Sequestration
One key issue is Carbon Capture and Sequestration legislation, which has been introduced in 17 states. Carbon sequestration is the process of removing access carbon from the atmosphere in order to mitigate the effects of climate change. In Maryland, HB155 would establish a Carbon Capture Opportunity Program. The Florida State House has jointly filed SB 1258 and HB1187, which would create a task force on Carbon Capture and Sequestration. The task force would study the benefits of sequestration and determine the next steps for adopting it within the state. This further highlights the interest in this type of legislation in states controlled by both Democrats and Republicans.
Climate Reporting
Another hot topic is how to best measure climate goals and reporting standards as a state. California recently passed SB 253, ‘Climate Corporate Data Accountability Act’. This Act is the first of its kind within the United States, becoming a model for other states to implement. The law mandates that companies have clear reporting standards on their carbon footprints. It also sets forth accountability standards for decreasing emissions. Finally, it creates a climate and financial disclosure rule that would make certain company data available to the state. This law was closely modeled after the European Union’s regulations around corporate accountability and climate change.
Legislators in Washington and New York introduced bills similar to California’s new law. Both are Climate Corporate Data Accountability Acts – Washington SB 6092 and New York S 897. Increasing climate accountability and transparency in these states is an incredibly important step for climate activism. Many large international companies are currently headquartered in California, Washington, and New York. This legislation argues that a higher level of public knowledge surrounding the climate impacts of Fortune 500 companies can lead to greater accountability and climate outcomes overall.
Climate Action Plans
Climate change is a massive legislative ordeal encompassing many policy topics. Due to their similarities, many climate policies often overlap in intent and implementation. Climate policy topics include, but are not limited to:
- Accessing and understanding the carbon footprints of large organizations
- Committing to clean energy transitions
- Creating green public infrastructure
- Investing in further green space
- Addressing environmental racism in disinvested neighborhoods
As the effects of climate change continue to occur, it’s nearly certain that this umbrella will continue to expand. Comprehensive, interconnected efforts to address climate change will become increasingly important. With this in mind, many states are adopting Climate Action Plans that encompass all aspects of climate policy. Thirty-three states have released Climate Action Plans. Others are continuing to create or update their objectives ahead of release. In 2024, we can expect to see Governors releasing plans, especially in the context of an election year.
Green Policies in the 2024 Election
Climate change and green policy is a heavily divided political topic. The Biden Administration taking on climate change policies as a core tenant. Meanwhile, GOP presidential candidates largely dispute the necessity of legislation addressing climate change. Given the divide on the importance of climate policy, the 2024 election will be pivotal. Millions of Americans are already feeling the effects of climate change in their daily lives. Millions more are increasingly at risk of being a victim of an environmental disaster or suffering from environmental contamination. It’s clear that climate change is a salient political issue and one of many contributing factors for voters when making a decision. Many voters, particularly young voters, base their support of a candidate on their position on climate change, among other factors.
Using Plural to Monitor State Green Policies in 2024
Plural is the legislative tracking tool of choice for public policy teams looking to monitor green policy, as well as a host of other legislative issues. Interested in getting started? Create a free account or book a demo today.
