As we approach the 2024 elections, energy policy is at the forefront of national debate. With climate change, energy security, and economic competitiveness becoming increasingly intertwined, understanding the different aspects of U.S. energy policy is crucial for informed voting.
More than removed, abstract concepts, the effects of energy policy are also experienced firsthand by many Americans. Whether that’s the record-breaking heat this past year or the devastating damage of hurricanes, it’s undeniable that climate-change weather disasters are costly both economically and in ways that are far more difficult to measure.
We will guide you through the key topics and provide context on how various policies affect the future of energy and of Americans in the country.
1. The Shift Toward Renewable Energy
The U.S. is undergoing a significant energy transition, shifting from a fossil fuel-based economy toward cleaner, renewable energy sources like solar, wind, and hydropower. The transition is driven by multiple factors:
- Climate Change: The U.S. and global leaders have set ambitious goals to limit global warming, aiming for net-zero emissions by 2050. The Biden administration has set the more near-term goals of reaching 100% carbon pollution-free by 2035. Transitioning to renewables is a key component of these efforts.
- Economic Growth: Clean energy has become a job creator, with over 3.5 million Americans employed in that sector, and a growth rate of 12.8% since 2020, according to the United States Energy & Employment Report 2024 from the U.S. Department of Energy. Solar and wind industries, in particular, have seen rapid growth.
- Energy Independence: Reducing reliance on imported fossil fuels improves national security by decreasing U.S. vulnerability to global energy market fluctuations. The U.S. has taken strong steps towards energy independence but also increased our gas and oil production. According to the EIA, the U.S. has produced more crude oil than any other country for the past six years, and broke records in 2023.
To combat climate change and build a future with clean air, water, and soil, transitioning to cleaner sources of energy is recognized globally as absolutely necessary. Despite advances, fossil fuels still account for a significant portion of U.S. energy production.
Recently, both parties have been encouraging if not downright celebratory of the increase in fossil fuel production, which leads to questions about the future role of oil and natural gas in the country’s energy mix and the pace of the transition.
2. The Role of Fossil Fuels
While the transition to renewables is gaining momentum, fossil fuels—particularly natural gas—remain central to the U.S. energy grid. The U.S. is the largest producer by far of natural gas and we are able to service all our domestic needs.
Natural gas is seen as a "bridge fuel" due to its lower emissions compared to coal, but its role is contested by environmental advocates who argue for a faster transition away from all fossil fuels.
One typical use for natural gas across the U.S. is in peaker plants (Peak Demand Power Plants), which only run when there is high demand for electricity. Many states across the U.S. are trending away from peaker plants and looking toward battery storage as an alternate solution that is more climate friendly.
The oil and gas industry also plays a vital economic role, particularly in states like Texas, Louisiana, and North Dakota. Balancing the economic benefits with the environmental costs presents a challenge for policymakers. Key policy decisions in the upcoming election could influence:
- Permitting for new fossil fuel infrastructure like pipelines.
- Regulation of methane emissions, a potent greenhouse gas.
- Subsidies and tax incentives for fossil fuel production.
3. Energy Justice and Equity
Energy policy doesn’t affect all Americans equally. Low-income communities and communities of color are disproportionately impacted by pollution from fossil fuels and often have less access to the benefits of clean energy. As a result, energy justice has become a growing focus in the policy landscape.
For example, disadvantaged populations are associated with being closer to peaker plants according to the Government Accountability Office. Peaker plants are a known emitter of multiple pollutants, including sulfur dioxide, which has multiple negative impacts on health.
Access to solar energy has typically been lower for disadvantaged communities because of financial and other constraints. For that reason, community solar is an excellent alternative and removes many of those barriers.
Legislation is being proposed to:
- Ensure equal access to renewable energy, such as community solar programs.
- Support clean energy job training in underserved areas.
- Reduce energy burdens by expanding energy efficiency programs, which can lower utility bills for low-income households.
Addressing these disparities is critical to creating an inclusive energy transition that benefits all Americans.
4. Federal and State Roles in Energy Policy
Energy policy in the U.S. is a shared responsibility between the federal government and individual states. This creates a patchwork of regulations and incentives across the country, with some states leading the charge in renewable energy adoption and others focusing on traditional energy sources.
- Federal Policies: The federal government sets national goals and provides incentives for clean energy through programs like tax credits for solar and wind projects. Federal agencies, like the Department of Energy (DOE), regulate energy infrastructure and oversee national energy standards.
The Inflation Reduction Act (IRA) was the largest investment in combating climate change to date, with a primary focus on accelerating the transition to renewable energy, reducing carbon emissions, and promoting energy efficiency.
- State Policies: States have significant authority in shaping their own energy landscapes. For example, New York has been leading the way in the energy transition with one of the largest and consumer-friendly community solar programs in the U.S., ambitious clean energy and battery storage targets, while Texas, despite being a leading producer of oil, is also one of the top producers of wind energy.
Understanding the interplay between federal and state policies will be critical for voters this election, as many energy decisions will depend on the balance of power in Congress, state legislatures, and governorships.
5. Energy Policy and National Security
Energy independence has long been a goal of U.S. policy. The rise of renewable energy domestically has helped reduce reliance on foreign oil, but there are still geopolitical implications to consider.
For example, the transition to renewable energy is heavily reliant on minerals like lithium, cobalt, and rare earth elements, which are primarily mined in other countries. Ensuring secure and sustainable supply chains for these materials will be an ongoing challenge.
Policies that promote domestic manufacturing of clean energy technologies and strategic partnerships with allied nations for critical minerals will play a key role in shaping the future energy security of the U.S.
6. The Role of Innovation in Energy
Technological innovation will be a driving force in the energy transition. Advancements in battery storage, carbon capture and storage (CCS), hydrogen energy, and smart grid technologies could help decarbonize the energy sector while maintaining grid reliability.
- Battery Storage: As more renewable energy comes online, grid-scale battery storage is needed to manage the intermittent nature of solar and wind power. Federal and state funding for battery innovation could accelerate the transition.
- Carbon Capture and Storage: CCS technologies aim to capture emissions from power plants and other industrial sources, storing the CO2 underground. Though controversial, CCS is seen as a critical tool for decarbonizing heavy industries.
- Hydrogen: Hydrogen, particularly green hydrogen produced using renewable energy, could become a key fuel for industries like shipping and aviation that are hard to electrify.
Federal research and development (R&D) funding will be crucial to advancing these technologies and ensuring the U.S. remains competitive in the global clean energy race.
Registering to Vote
The first step to voting is registering. The registration deadlines vary by state by state and typically occur at the beginning of October. For more information, visit this government website with everything you need to know.
