Report 2024 Legislative Energy Trends

Introduction 

State legislatures tackled a wide variety of energy policy priorities in 2024.  NCSL tracked more than 3,500 energy-related bills across the 50 states and territories. Approximately 580 of these bills—17%—were enacted into law, according to NCSL’s State Energy Legislation Database. 

State legislatures made major efforts to improve and modernize the electric grid, an issue of growing importance and urgency as new resources come online, older legacy resources retire, and the United States’ overall energy mix has continued to diversify. State legislative trends from 2024 also highlight policy challenges such as how to increase supply to meet growing demand from large load sources, such as data centers, ensure energy resilience even under extreme conditions, and how to protect the grid from both natural disasters and human-caused threats. 

NCSL also identified a continued focus on clean energy development and more broadly, state efforts to reduce greenhouse gas emissions from the energy and transportation fuels sectors. NCSL also tracked legislative trends relating to the nuclear, coal, oil and gas sectors, including policies to support long-term sustainability of the fossil fuel sector as a major and reliable energy source for states. 

These state legislative trends reflect the different goals and objectives of state legislatures across the United States, and the equally varied approaches they are taking to support a modern and robust energy system that meets each respective state’s long term energy needs.

Transmission and the Grid

Transmission development and grid expansion has become a major concern for lawmakers as they look to bring new energy resources online and improve energy resilience. New or upgraded transmission allows many states to achieve their energy generation targets and interconnect this generation to the grid, especially those built and operating in rural areas. Additionally, transmission upgrades and expansion can enhance energy resilience by facilitating a more efficient and increased flow of electricity between regions and states. Thirty states and Puerto Rico introduced 143 bills concerning electric transmission and the grid in 2024.

Despite the increasing need for new transmission infrastructure, the planning, siting and constructing of high voltage transmission lines can be a long and tedious process. As a result, states are investigating alternatives to expand grid capacity without having to construct new lines. One alternative is grid enhancing technologies: hardware and software upgrades that can increase transmission capacity and flexibility. In recent years more states have begun to require utilities to include considerations of GETs in their integrated resource plans. As one example, in 2024 Maine enacted LD 589 requiring a review every five years of available GETs that could be newly implemented by utilities to reduce the need for investment in grid infrastructure.

One common form of GET is reconductoring. Reconductoring is the replacement of old transmission conductors with new ones that have lower electrical resistance and can improve the carrying capacity of the line. California, Massachusetts, New Jersey, New York and South Carolina all introduced legislation addressing reconductoring in 2024. California enacted SB 1006 requiring utilities to prepare a study every four years on which transmission lines can be reconductored with advanced conductors to achieve states’ goals including increasing transmission capacity, reducing system congestion and lowering the risk of wildfire ignition from sagging lines.

Microgrids have emerged as another potential alternative for enhancing grid reliability. A microgrid is a group of interconnected distributed energy resources that can operate as a controllable entity, so it can connect to the grid or disconnect from the grid and run in island mode. If there is a disruption to the broader grid, the microgrid can disconnect and continue to generate energy to deliver to consumers. At least five states considered 12 bills directly concerning microgrids in 2024. New Hampshire, for one, enacted HB 558 to initiate a study on the potential benefits and risks for developing a framework of microgrids in the state.

Energy Resilience

The U.S. electricity grid faces constant challenges posed by natural disasters and man-made security threats. In 2024 alone the United States experienced 27 natural disaster events exceeding $1 billion in losses each. The growing prevalence and impact of wildfires, hurricanes, flooding, and winter storms are ongoing challenges for states.

States have introduced a variety of legislation to better ensure resilient energy systems as well as enhanced mitigation efforts during extreme weather. For example, Alaka (HB 227), New York (AB 343), and Rhode Island (SB 2306) assigns liability for vegetation management to utilities and directs vegetation management around various energy infrastructure such as utility poles.

Moreover, states have concentrated on ensuring reserves of energy sources, emergency backup sources, and planning requirements to ensure resilience when needed most. California AB 1061 requires that facilities constructed under the Distributed Electricity Backup Assets Program or the Demand Side Grid Support Program to provide on-call emergency supply or load reduction comply with other state regulations regarding emission reporting and reduction. Florida HB 1645 allows local governments to adopt ordinances for resiliency facilities in specified districts. The territory of Guam passed B 206 providing further capacity for temporary emergency power. Maryland SB 474 alters the definition of generating facility to exempt construction of certain generating facilities that produce onsite emergency backup power.

Lastly, some states have enacted legislation authorizing development authorities to invest in resilient energy infrastructure. Georgia HB 206 authorizes downtown development authorities to finance improvements including energy efficiency, renewable energy and resilience improvements. While South Carolina passed joint resolution S 912 to support the SC Nexus and the development of advanced resilient energy.

Energy Security and Human Threats to Energy Infrastructure

States have increasingly recognized the risk of man-made threats including physical attacks and sophisticated cyber-attacks on critical energy infrastructure, both from domestic and overseas actors. States have persisted in their focus on protecting energy infrastructure and maintaining the energy sector’s readiness for all hazards.

In this effort, states have continued to pass legislation creating stricter penalties for damaging critical energy infrastructure. Delaware HB 91, Florida HB 27, Louisiana HB 507, North Carolina SB 58, and West Virginia HB 5091 all enacted legislation in 2024 amending criminal codes to enhance penalties for trespassing and damaging critical infrastructure. Idaho HB 519, Iowa HSB 704, New York AB 5575, and Oklahoma HB 3024 also all introduced legislation to enact stricter penalties, although these did not pass. Iowa and New York, notably, addressed the use of drones and other unmanned aircraft over critical energy infrastructure.

Coal, Oil, and Natural Gas Trends

Many states continue to utilize fossil fuels for much of their energy and economic needs and have pursued policy strategies to ensure an adequate, affordable supply of coal, oil, and natural gas, repurpose older sites for new types of energy generation or provide economic incentives to mitigate the impacts of changes in energy policy and markets.

Coal

According to the U.S. Energy Information Administration 23% of the U.S. coal-fired power capacity is scheduled to retire by 2029, representing approximately 9,450 MW of capacity retiring each year. Numerous communities are heavily dependent on the operation of coal-fired power plants for their community’s economic well-being. As such, some states have enacted legislation addressing these communities’ transition away from coal. Colorado SB 190 allows coal transition communities to qualify as enterprise zones and creates an income tax credit for costs incurred in the maintenance, operation and improvement of rail lines. Virginia SB 25 creates the Virginia Brownfield and Coal Mine Renewable Energy Grant Fund to provide grants to fund renewable energy projects located on brownfields or previously coal mined lands.

Concurrently, several states considered legislation that would prevent the retirement of coal facilities, as well as natural gas and other legacy generation, often aimed at protecting resources that have long provided a stable energy supply. A couple examples include Kansas SB 456 and Indiana HB 1382, which prevent or delay the closure of fossil fuel energy facilities unless utilities can prove they can be adequately replaced, will not harm ratepayers, and will improve energy reliability and resilience, among other things. While these did not pass, they demonstrate continued state interest in preserving the operation of important legacy energy resources. Virginia considered legislation with SB 562, which advanced through its committee but was not enacted, that would have created a pilot program for the state’s major investor-owned utilities to deploy electricity generation from captured coal mine methane.

Oil and Natural Gas

Oil and natural gas saw significant legislative activity in states in 2024. Forty-eight states introduced over 350 pieces of legislation regarding oil and natural gas. A few states continued with a recent trend of banning fossil use in new construction. New Jersey for instance introduced legislation with SB 1130 that would specifically allow municipalities to prohibit natural gas connections in new construction. Conversely, one of the emerging trends of the last year or two has been legislation prohibiting these kinds of restrictions (see building electrification section above). Alabama SB 50 and Mississippi HB 1583 prohibited any governmental entity from restricting an appliance based solely on the energy generation used to operate the appliance. Washington also saw voters approve Ballot Initiative 2066 that removed the state’s recent ban on natural gas connections in new construction.

Well remediation was another popular topic in several states. The topic also received significant funding through the Infrastructure Investment and Jobs Act, providing the Department of the Interior $4.7 billion for plugging of orphaned wells, remediation and restoration. Several states passed legislation that could leverage increased funds, along with their own fees, to mitigate abandoned wells or otherwise ensure that fossil fuel development is done responsibly according to state priorities. California AB 1866 increases the fees for idle wells to be deposited in the Hazardous and Idle-Deserted Well Abatement Fund. The fee is assessed annually based on the length of time the well has been idle. Colorado SB 230 imposes a fee on oil and gas producers to support statewide remediation services that will create a positive impact on the environment. Louisiana HB 23 provides for the combined use of state and federal funding under the Oilfield Restoration Fund for the restoration of oil fields as well as the plugging of orphaned wells. Finally, on the enforcement side, Idaho HB 402 provides criminal charges relating to class II injection wells establishing that any owner or operator maintaining a deep injection well without having first obtaining a permit shall be guilty of a misdemeanor.

Nuclear Energy 

The trend of nuclear energy headlines continued in 2024 as states focus on nuclear development to meet emissions goals, meet the energy demand, and bring economic growth and new energy job opportunities across the U.S.  As reactor designs have modernized over the last few decades, states are focusing both on building first-of-kind reactors, creating modern fuel designs, revamping the domestic nuclear fuel supply, and repurposing existing power plant sites for modern nuclear reactors. NCSL tracked over 160 nuclear energy and spent nuclear fuel-related bills in 2024.   

Supporting Existing Nuclear Facilities

The operation of existing plants was a state focus in 2024. Two states moved forward with plans to reopen shuttered plants, including Michigan’s Palisades plant.  Michigan’s legislature aided the restart through SB 747, allocating $150 million to reopen the Palisades plant. The plant was shuttered in 2018 and requires repairs and upgrades before the plant can return online.  

After a multi-year process to determine Diablo Canyon Power Plant’s fate, California’s Public Utilities Commission approved $722.6 million from ratepayers to continue the plant’s operation. California SB 108 also allowed the state to use a $400 billion loan from the California General Fund to extend operations.

Lastly, Connecticut ensured continued nuclear plant operation through SB 385, creating a partnership between the New England states to procure power from the state. Power purchased by other states will increase revenue to continue the plant’s operation.  

SMR and Advanced Reactor Development   

Many states in recent years have enacted legislation to develop reports on the costs, benefits, and feasibility of advanced reactors and SMRs. In 2024, New Hampshire enacted HB 1465 to continue studying the development of nuclear energy and Florida enacted HB 1645, requiring the public service commission to study the feasibility of nuclear energy and advanced reactors in the state. Kentucky also enacted a bill to study barriers and needs for a nuclear workforce in the state as they focus on developing nuclear.  

States also have moved toward changing the definition of clean energy to include or allow nuclear energy, making it eligible for tax credits, incentives, or emission targets. Utah HB 124 changes the word “renewable” to “clean” in relevant energy statutes to define nuclear energy as clean in the state. Through this definition, nuclear projects in Utah qualify for high-cost infrastructure tax credits. Massachusetts SB 2967 added nuclear fission to the definition of clean energy and clean energy research, allowing the state to purchase energy from Millstone Nuclear Power Plant in Connecticut or other outside nuclear generation. Ohio also passed HB 308, defining nuclear generation as green energy.

As states work to develop plans for nuclear energy and consider constructing new reactors, the long road to permitting through the Nuclear Regulatory Commission (NRC). Oklahoma SR 30, Louisiana HR 2, and Kentucky HR 70 all urge federal regulators and the NRC to shorten the timeline for reactor licensing and create a more efficient process. As SMRs and microreactor designs are licensed, states have encouraged the NRC to allow assembly line-type manufacturing, rather than licensing each individual advanced reactor of the same design.  

Though the emissions benefits, workforce opportunities and energy reliability are attractive to states, it is no secret that reactors are costly. Whether states are preparing for one reactor or a fleet, initial construction costs remain a barrier and questions remain over how to recover costs. Virginia SB 454 and HB 1491 clarify utility opportunities to recover costs. SB 454 allows one utility, Dominion Energy, to ask the State Corporation Commission (SCC) to recover SMR construction costs from ratepayers while HB 1491 allows American Electric Power to request the State Corporation Commission to review such utility's decision to incur project development costs before the utility applies to construct an SMR. Missouri enacted SB 1388 to reduce construction costs. The bill creates a state and local sales tax exemption for the materials used to construct a nuclear reactor. 

As the country adapts to a shifting energy focus and faces reliability and resilience challenges, nuclear energy is poised to play a key role in the nation’s energy future.  

Renewable Energy

In 2024, 45 states, the District of Columbia and three territories considered at least 1,023 bills related to renewable energy, a broad subject encompassing a number of technologies such as solar, wind, geothermal, and biofuels. Renewable energy was the most commonly tracked legislation in NCSL’s database and clearly remains a priority issue for states. Many states continue to work toward their own renewable or clean energy targets, while also addressing the need to continuously provide electricity to meet growing electricity demand.

Solar Energy

The majority of legislation in 2024 regarding solar energy was focused on distributed scale solar. Distributed solar resources are small-scale solar systems connected to the low-voltage distribution grid and are often located near where they are used, such as rooftop solar panels. The focus on distributed energy may be for a couple of reasons. First, distributed resources do not require transmission connections to interconnect to the rest of the grid because they are already located near where the energy will be consumed. Therefore, transmission buildout is not necessary to bring distributed solar resources online. Second, distributed resources can improve energy reliability and resilience in case of outages and threats to the broader grid. For example, during an extreme weather event, if a generating plant or the transmission system is disrupted, power can often still be provided by distributed resources.

Community solar in particular has continued to expand as a way to enable solar access for customers who may face barriers to owning their own solar systems, such as renters or residents of multifamily housing units. Community solar programs allow multiple customers to purchase interest in shared renewable energy systems located on-site or off-site. Participating customers are allocated benefits from the shared system through either virtual net metering or bill credits. In 2024, 14 states introduced legislation concerning community solar or shared energy. Both Virginia and Alaska enacted bills establishing new community energy programs, while New Jersey converted its community solar pilot program into a permanent program.

Florida passed SB 770 to authorize a property tax financing program for home property improvements to be used for solar energy systems and other forms of renewable energy. Hawaii enacted HB 2685 establishing the Solar Hui Program, which includes an investment fund to facilitate the installation of solar systems for multifamily residences. Owners of multifamily residential properties may invest in the fund and may then be eligible to receive a tax credit for the installation of a solar system or income derived from a solar project entered by the fund.

With the rise in demand for distributed solar resources, concerns have grown regarding predatory practices, namely sales tactics that misrepresent the costs and benefits of a residential solar system. As a result, states are starting to consider policies aimed at protecting consumers from unfair practices. Washington enacted HB 2156 setting stricter guidelines for solar salespersons and contractors to accurately convey the financial terms and total costs of solar energy equipment to customers. Furthermore, Utah HB 215 aims to enhance solar consumer protections by providing a window of time for consumers to cancel a solar installation and receive a refund after signing an agreement. In addition to improving consumer protections, states are also looking to make information on solar energy systems more accessible for consumers. In one simple approach, Tennessee SB 2486 requires the state’s Office of Energy to expand its website to include additional information and resources on residential and utility scale solar.

Geothermal

Geothermal energy has started to gain traction as a source of renewable energy. Geothermal energy is generated from heat within the earth and can be used for electricity generation as well as building heating and cooling. Legislatures introduced at least 36 bills concerning geothermal energy in 2024 with six states enacting legislation.

Geothermal is still in its early stages of implementation in the U.S., producing only around 0.4% of the total energy generation in the U.S. in 2023. However, many states are starting to embrace geothermal as a new resource for electricity, heating and cooling, with a growing number in 2024 considering legislation to promote and incentivize development. For example, New Mexico passed HB 91 to create the Geothermal Projects Development Fund and Geothermal Projects Revolving Loan Fund. These programs are established to provide grants and loans to finance studies on geothermal projects and the development of projects themselves. Washington passed SB 6039 setting certain requirements to help promote the implementation of geothermal energy resources. Requirements include a geologic survey to identify and record geothermal wells and other geologic conditions and updated geothermal lease rates to improve competitiveness for attracting geothermal energy projects to the state. Meanwhile, Maryland enacted HB 397 requiring gas companies to develop plans for a pilot thermal energy network system—a single project that connects multiple buildings together with a heating and cooling system. Virginia enacted SB 508 expanding the state’s renewable energy portfolio standard to include geothermal heating and cooling systems as eligible energy sources, aiming to support geothermal development sector-wide.

Wind Energy

Legislation focused on wind energy was also a common focus for states, particularly where the potential for wind generation is high. At least a dozen states enacted almost 20 bills focused on wind energy in 2024. Delaware SB 265 moved to allow the state’s energy office to solicit proposals for offshore wind facilities. Maryland enacted a similar bill (HB 1296) that would require the state Public Service Commission to formally evaluate certain offshore wind projects and issue procurement solicitations for offshore wind by 2024.

Colorado also enacted legislation to support wind energy permitting, but for onshore projects, including SB 212 that would help facilitate permitting and technical support for strategic renewable energy projects such as commercial wind facilities. More generally, Oregon HB 4080 requires the development of an offshore wind roadmap and clarifies that it is state policy to support engagement between wind energy developers and various stakeholders, including several tribal groups, in the development of wind resources. In many cases, state legislation has sought to directly address concerns related to the compatibility of wind energy facilities with other developments, including some of the bills above. As one specific example, Utah enacted HB 117 in 2024 to ensure siting compatibility by requiring that wind developers certify that proposed construction does not encroach upon or negatively impact nearby military facilities, of which there are several in the state.

Building Electrification and Energy Efficiency

While a considerable amount of legislation has been focused on energy generation and supporting the development of newer renewable resources, legislators have also been considering action to minimize energy consumption with policies addressing electrification and energy efficiency, typically as a means of reducing energy costs, reducing energy emissions, or both.

States frequently address energy consumption through updated building codes which can set standards for energy efficiency or conservation within buildings. Many states’ building codes align with international codes, which are determined by the International Code Council. The ICC is a nonprofit standards organization that sets model building codes. Both Utah and Rhode Island enacted bills in 2024 modifying their building code requirements to align with international codes.

Policymakers have become increasingly focused on reducing buildings’ emissions through electrification. Electrification is the conversion of certain building functions currently powered by fossil fuels, such as heating, to be powered by electric appliances. In 2024, 29 states plus Puerto Rico and the District of Columbia introduced at least 158 bills focused on building electrification. A few states pursuing building electrification have also considered bans on natural gas connections. Maryland, New York and Rhode Island also all introduced legislation this year requiring all new buildings to be all electric by prohibiting the use of fossil fuels. Washington enacted HB 1589 early in 2024 to prohibit the supply of gas services to any commercial or residential location not already receiving a gas service. However, this bill was overturned by a ballot measure in November 2024. At the same time, a couple of states have enacted legislation prohibiting bans on natural gas. Mississippi HB 1583 created the Consumer Freedom of Choice in Appliances Act which bars local governments and utilities from banning natural gas as a type of energy in appliances. Similarly, Alabama enacted SB 50 prohibiting government entities from enacting or enforcing policies that would restrict the use of an appliance solely due to the type of energy used by the appliance.

Data Center Energy Demand

The energy consumption of centers is an issue of rapidly growing interest and concern. In large part due to the growth of cloud computing and artificial intelligence, along with other data needs, the demand for data centers is growing dramatically. Though a key part of a modern digital economy, data centers consume huge amounts of electricity due to the complexity and scale of their operations. These facilities house servers, storage systems and networking equipment to process, store and communicate data. Data centers consumed about 4% of electricity generated in 2023 and consumption is projected to climb to as much as 9% by 2030.Due to these energy concerns, state legislators have begun to prepare for this rise in data center demand. In 2024, Colorado (SB 85), Massachusetts (HB 2792), and Michigan (HB 4906) all considered legislation to incentivize the use of energy efficient technologies at data centers through sales tax exemptions and rebates. Virginia also introduced a bill that would require data centers to meet specific energy efficiency metrics, otherwise they would forfeit existing sales and tax use exemptions.

In addition to implementing energy efficient technologies, states have also looked into facilitating onsite generation for data centers to help compensate for their high energy demands. In several cases, data center owners are hoping to build alongside large generation facilities—whether fossil-generated or renewable. Maryland enacted SB 474 which exempts backup generation stations for data centers from the requirement to obtain a certificate of public convenience, which could help ease permitting for these types of on-site energy facilities.

Carbon Capture and Sequestration

Carbon capture and sequestration (CCS), or carbon capture utilization and storage (CCUS) has remained an important topic of legislation for states, with over 100 bills introduced across at least 28 states in 2024. Carbon capture technologies are poised to see continued growth as states look for new ways to economically reduce emissions, often alongside continued fossil fuel development. The Department of Energy announced two new funding opportunities in December 2024 for $1.3 billion to bolster CCUS technologies and an additional $1.8 billion to advance mid- and large-scale commercial direct air capture facilities.

As states increasingly support carbon capture policies, they are also looking to have more control over CCS wells and other infrastructure in their states and clarify state level regulations to help encourage and manage development. In December 2023 Louisiana became the just the third state, after North Dakota and Wyoming, to be granted well primacy by the EPA, giving the state the authority over regulation of wells used to store and sequester carbon. Ideally this will accelerate the speed and growth of the CCS industry in the states. West Virginia HB 5045 provides assurances to the Environmental Protection Agency regarding its own application for well primacy relating to the Water Pollution Control Act. Colorado HB 1346 broadens the state’s Energy and Carbon Management Commission’s authority to regulate geologic storage operations like CCS and CCUS facilities. Alabama HB 327 and Illinois SB 1289 enacted bills that define pore space ownership, the porous space in deep rock formations where carbon dioxide can be stored, as belonging to the surface owner of the subsurface pore space, helping clarify property rights around CCS and CCUS. Louisiana HB 937 provides that a landowner shall not assume liability associated with geologic carbon dioxide storage by the mere fact their property is being used for geologic storage, which could help mitigate conflicts around new facilities.

GHG Emissions Reduction

Greenhouse gas emissions reduction remains a significant area of legislation for states. In 2024, 44 states plus Guam and Puerto Rico introduced 500 bills addressing climate or reducing emissions.

Carbon cap-and-trade programs and carbon offsets are a few methods states are pursuing to gradually reduce emissions over time. Eleven Northeast states participate in the Regional Greenhouse Gas Initiative, as well as California and Washington establishing statewide programs. A couple additional states also moved in a similar direction in 2024, while at least a couple bills were introduced but did not move forward.

Alaksa SB 48, for example, allows for the leasing of state forests for carbon offset projects and allows for the project to register as a carbon offset project to generate revenue. Washington meanwhile enacted SB 6058 directing the state Department of Ecology to explore linking the state’s carbon market with the California-Quebec carbon market in an effort to expand the market and lower allowance costs for businesses participating in the market. New York considered a bill (AB 8469), though it did not pass, to establish an economy wide cap-and-invest program covering every sector in the state. Proceeds gathered from the auction of carbon allowances would have been invested in other emission reduction projects. Oklahoma also introduced legislation (SB 1389) that would have established a cap-and-invest system in the state. Fuel, oil and gas, public utilities and transportation would have been required to participate under the program. New Hampshire also enacted related legislation; in considering potential carbon offset programs, HB 1697 requires a study of how enrolling forest lands into carbon offset and credit programs could impact timber harvest revenues. directs the state Department of Revenue Administration to study the loss of timber tax revenue for forest lands enrolled in carbon credit offset programs.

In addition, states have continued to enact legislation to address a variety of sectors’ emissions. California AB 126 extends certain Air Quality Improvement Program fees to fund air quality improvement projects such as zero-emission vehicles.  Colorado SB 229 requires its Division of Administration to propose rules that would reduce nitrogen oxides from upstream oil and gas operations relative to 2017 emission levels. Maryland HB 990 alters the definitions of manufacturing to exclude cement production for greenhouse gas reduction requirements, providing regulatory relief for a hard-to-decarbonize industry while still applying relevant targets to the energy sector and other sectors.

Low-Emission Vehicles and Electric Vehicle Infrastructure

NCSL tracked almost 400 bills in 2024 across 30 states relating to electric vehicles and EV infrastructure, with over 60 enacted. Including legislation focused only on hybrids or other alternate fuel vehicles, over 80 bills were enacted across at least 34 states.

One broad trend NCSL has seen in 2024 regarding electric vehicles and EV Infrastructure has been financial incentives or targets for electric vehicle and charging infrastructure deployment. Regulating the rollout of charging infrastructure and increasing public charging access is increasingly a priority for state legislators, as that has been one of the major hurdles for those states with EV deployment goals.

Low Emission and Electric Vehicle Targets

Setting EV sales targets and standards to deploy EVs and alternate fuel vehicles has been a longstanding trend across past years, but 2024 saw new wrinkles. For background, about 20 states plus California have adopted low- or zero-emission vehicle standards for passenger cars under section 177 of the Clean Air Act. Most often these rules are adopted via regulation, but NCSL continues to see legislatures creating standards and targets. For example, both New Mexico (HB 41) and New York (AB 967) created new clean fuel standards aimed at reducing the carbon emissions of transportation fuels; the bills are generally designed to be technology-neutral, rather than targeting EV deployment specifically, to help incentivize fuels such as renewable natural gas and blended transportation fuels.

At this stage, nearly every state or one of its utilities has some form of EV or alternate fuel vehicle incentive. NCSL still sees legislation providing incentives, but new action is slowing and increasingly targeting specific groups of drivers. Several states have specifically targeted commercial and public works fleets for electrification. Others have made targeted changes to state procurement policies to incentivize state EV purchases. For example, in 2024 New Jersey enacted AB 1677, which intends to make it easier for school districts in the state to adopt low emission school buses by allowing longer contracts only for EV buses. New Hampshire will now allow the state’s public infrastructure fund to be used for school bus purchases (HB 1161). New Jersey AB 1474 and Illinois HB 4196 would have also provided financial incentives for EV school buses but did not pass.

On the other hand, a notable trend grew legs in 2024: bills that specifically prevent states from adopting California’s EV regulations, as in Kentucky (SB 215) or Louisiana (HB 515), or delaying the purchase of EVs for state fleets (New Hampshire HB 1333, failed). While New Hampshire did not require a delay of state EV purchases, the state did enact SB 430 to study the impacts of EVs on the state, including fire safety; more on battery safety can be found in the Energy Storage section below.

Deploying Alternate Fuel and EV Charging Infrastructure

On the EV infrastructure side, many states continued finding ways to support charging installations, and either requiring or making it easier for private entities to install charging in new developments, often targeting multifamily residences that may have less access to public charging. One issue around which NCSL saw significant legislation is reducing siting and permitting hurdles for electric vehicle charging stations. Generally, the focus is growing on how to make sure people who want to transition to EVs can predictably use and charge their vehicle.

Delaware enacted HB 13 in 2024 that will provide financial incentives for charging station installations, covering most of the expense for low-income applicants. California SB 983 will require a study of how to improve alternative fuel infrastructure, focusing on potential collocation with gas stations. The state also enacted AB 2427 to help local governments develop permitting processes for “curbside charging.” Colorado similarly enacted HB 1173, aiming to streamline and create more consistent local charging station permitting processes. On the other hand, some states, like Kentucky with HB 581, are limiting zoning restrictions in an effort to ensure charging stations development does not come at the expense of other necessary fueling stations. Still, this may also lead to zoning policies that allow co-location of charging stations and traditional fueling stations. Louisiana HB 835 is one example of bills enacted in 2024 exempting EV charging providers from public utility regulations, making it easier for charging station owners to offer and collect revenue from public charging. This type of legislation has become more common as a relatively simple way to support the deployment of charging stations.

Ensuring reliability is also a growing focus. As EV deployment grows, planning for the growing demand on the grid is increasingly important. Two examples from 2024 include Maryland and Virginia. Maryland SB 951 ensures EV infrastructure is reliable, creating an EV Supply Equipment Work Group to develop framework standards. The state also enacted HB 159 to clarify requirements for unit owners in “common ownership communities,” such as insurance coverage requirements. Virginia passed HB 405 that, while vetoed, would have helped conduct an evaluation of the electric distribution infrastructure necessary to support EV charging in new developments.

In order to better ensure electric vehicles, contribute to road maintenance funds, the last couple years has seen a gradual move from creating EV registration fees toward taxing the electricity used for EV charging, which some see as more analogous to a gas tax. At least nine States have now imposed taxes on charging (Georgia, Iowa, Kentucky, Montana, New Jersey, Oklahoma, Pennsylvania, Utah and Wisconsin), typically on a cents-per-kwh basis. Wisconsin enacted SB 791, creating new kwh-based charging taxes in 2024, and Pennsylvania SB 656 adjusted its charging tax to only apply to public chargers. New Jersey enacted legislation establishing an annual EV fee (AB 4011), but in doing so also required development of recommendations to the legislature for a new system of EV charging taxation. Several similar bills were considered in 2024.

Energy Storage Trends

Energy storage legislation was robust in 2024. At least 34 states introduced more than 200 bills specifically focused on energy storage in 2024, over 40 of which were enacted. Energy storage technologies, a wide category including hydropower as well as many newer chemical (e.g. batteries), mechanical, and thermal technologies, allow excess renewable energy generation to be stored for later use. Energy storage has important functions for balancing energy supply and demand, addressing fluctuations in generation from intermittent resources and providing reliability during outages. A couple of the most common storage technologies include hydropower and lithium-ion batteries, and efforts are growing to develop longer-term storage technologies that can support the grid through extensive grid disruptions. As more battery energy storage systems are deployed, states are also working to mitigate fire safety concerns and support the effective management or recycling of battery waste.

Storage System Deployment and Planning

One of the most common energy storage trends in 2024 was legislation to encourage or require utilities to deploy new storage resources, including through their siting and planning processes, though it was also common to create new financial incentives for businesses to develop storage resources. Oregon HB 4015 and Virginia HB 650 passed to allow ease permitting and siting requirements. Other bills, like Maryland HB 216, took another approach that allows homeowners associations and common interest communities to themselves grant easements on their properties for grid-connected energy storage resources. California considered SB 1508, which only passed one chamber, that would have required utilities’ integrated resource plans to include long-duration storage that can supply power for many hours or days. Oklahoma SB 1370 created the Oklahoma Low Carbon Energy Initiative to promote research and development around technologies including hydrogen energy storage. Utah enacted HB 124 that includes new emissions reduction technologies, including certain energy storage, as eligible for “high-cost infrastructure” tax credits. Utah will also study the feasibility of creating its own fuel storage reserve to cover future energy needs and ensure resilience (HB 317).

Battery Safety and Management

As more batteries enter the market and are installed at both the residential and utility scale, questions about how to manage the waste from these batteries have become more common as well, along with policies to ensure safe handling. Legislation like this has been fairly common the last couple years, as states aim to develop deliberate, effective policies to manage a growing battery sector. One of the most recent examples is Maryland SB 532. The bill created a commission to study and develop recommendations concerning best practices, standards, and guidelines for battery decommissioning, waste management and recycling, and fire prevention and suppression. Vermont enacted SB 254/Act 152 to add rechargeable batteries to the state battery waste management programs. Focused more on smaller batteries, the policy ensures rechargeable (e.g. lithium-ion) battery waste is effectively managed and prohibits producers from selling rechargeable batteries unless they participate in the state’s “Battery Stewardship Program.”

Conclusion

Regardless of the differences in energy priorities and needs across the country, state legislatures in 2024 continued to demonstrate the critical role they play in energy planning. From developing new energy resources and related infrastructure to protecting the energy system against various hazards, 2024 was a busy year for state legislatures setting priorities and directing resources to keep the lights on and build a modern grid to support a modern U.S. economy.

NCSL’s Energy Legislation Database will continue to track legislation from all 50 states and territories in 2025 as forecasts are for another busy year in state energy policy leadership.