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Presentation provides an overview of federal carbon reduction policy; net-zero emission building, campus, and installation design; performance targets; and decarbonization strategies.
As the global carbon footprint continues to grow, many countries are implementing carbon emission reduction policies which have incentivized the expansion of low-carbon and renewable technologies. However, the speed and scale of deployment falls short of that needed to meet climate goals. Energy system models serve as key tools for guiding investment decisions and helping policymakers evaluate the effects of various policies on the development of an energy system. This study focuses on the energy system of the United States and builds upon prior work by incorporating more geographic granularity to account for the trade of commodities and addresses transmission congestion through electricity price adjustments. Furthermore, real-world characteristics, such as delays in constructing new liquid fuel production and electricity generation facilities, are integrated using a sequential decision-making approach that better reflects how decisions can be updated as uncertainties unfold. Results demonstrate that stochastic programming combined with sequential decision-making produces energy transition pathways that are robust to multiple uncertain futures. Additionally, considering real-world characteristics significantly impacts the deployment of renewable technologies and the ability to meet carbon emission reduction goals while also reliably meeting demand. These findings highlight the importance of accounting for uncertainty and real-world characteristics to avoid overly optimistic projections in energy system planning.
Abstract Embodied carbon refers to the greenhouse gas emission associated with the lifecycle of buildings. Embodied carbon policies are critical for addressing the environmental impact of construction materials and advancing climate goals. Despite their importance, the adoption of embodied carbon policies has been limited globally, influenced by economic, environmental, institutional, and trade factors. This study employs structural equation modeling to analyze 37 countries, testing ten hypotheses across four categorical factors. The base model reveals the significant influence of environmental vulnerability and institutional frameworks on policy adoption, while robustness models confirm the critical role of trade dependencies and economic competitiveness in shaping national embodied carbon strategies. Findings underscore that countries with high climate vulnerability and strong institutional support are more likely to adopt embodied carbon policies. Conversely, trade-reliant nations face challenges balancing competitiveness and sustainability. Policy implications suggest the need for international collaboration to align trade policies with carbon reduction goals, targeted support for vulnerable nations, and the integration of embodied carbon considerations into existing climate frameworks. These results offer a roadmap for policymakers to design more effective and equitable embodied carbon policies, fostering global progress toward sustainable construction and decarbonization.
To limit the global warming to 1.5 °C above pre-industrial levels, beyond which the most dangerous impacts of climate change will occur, achieving carbon neutrality by the mid-21st century is essential. As the largest developing country and a significant contributor to carbon dioxide (CO 2 ) emissions, China has announced its ambitious climate commitment to pass carbon peak before 2030 and to achieve carbon neutrality by 2060. Both climate policies and regional clean air actions have been implemented for reductions in fossil fuel emissions, including the emissions of short-lived aerosols and precursors. Furthermore, in the context of pursuing carbon neutrality in China, aerosol reductions due to clean air actions and pollution control policies are very likely to have a great impact on climate. In this study, climate effects of aerosol reductions due to China's clean air actions under localized future emission scenarios are investigated using the Community Earth System Model version 1 (CESM1). Fully coupled and atmosphere-only experiments in years of carbon peak (2030) and carbon neutrality (2060) are performed with anthropogenic emissions of aerosols and precursors under “Current-goals” (Current) and “Carbon-Neutral” (Neutral) scenarios from the Dynamic Projection for Emissions in China (DPEC) model that consider socioeconomic development, climate policy, and pollution control actions (Figs. S1–S4 online). In addition, a present-day emissions simulation (PD) is conducted as the reference case (Supplementary materials online). Another sensitivity simulation is also conducted, with black carbon (BC) emissions set to follow the Neutral experiment but other emissions kept at the present-day levels (Neutral_BC), to quantify the relative roles of reducing strongly absorbing BC and other aerosols on future climate towards carbon neutrality. Greenhouse gases concentrations are kept at the 2015 levels in all simulations (Text S1 online).
Many countries, subnational jurisdictions, and companies are setting net-zero emissions goals; however, questions remain about strategies to reach these targets, policy measures, technology gaps, and economic impacts. Here, we investigate the potential policy implications of reaching economy-wide net-zero CO 2 emissions across the United States by 2050 using results from a multi-model comparison with 14 energy-economic models. Model results suggest that achieving net-zero CO 2 targets depends on policies that accelerate deployment of zero- and low-emitting technologies that have seen rapid cost reductions in recent years (including wind, solar, battery storage, and electric vehicles) as well as relatively nascent options (including carbon capture and storage, advanced biofuels, low-carbon hydrogen, advanced nuclear, and long-duration energy storage). While net-zero policies are likely to lower fossil fuel consumption, including considerable coal and petroleum reductions, achieving net-zero emissions does not necessarily mean phasing out all fossil fuels. Model results indicate that the Inflation Reduction Act’s energy and climate provisions amplify near-term decarbonization but that net-zero policies have larger impacts on long-run outcomes. Stringent climate policy can have large fiscal impacts on tax revenue and government spending—revenues from carbon pricing and subsidies for carbon removal range from 0.1 % to 3.7 % of GDP in 2050 across models. Each dollar per metric ton carbon price leads to a 0.06 % to 0.31 % reduction in economy-wide CO 2 emissions relative to a reference scenario with current policies. Spending on energy across the economy decreases relative to today for many models under reference and net-zero policies, especially as a share of GDP, due primarily to end-use electrification and energy efficiency.
The New York Power Authority (NYPA) is committed to supporting the Climate Leadership and Community Protection Act (CLCPA) through its VISION2030 strategic plan. As a clean energy provider, NYPA is seeking to demonstrate leadership in every aspect of its business by taking a comprehensive approach to sustainability management and integrating sustainability principles into day-to-day decision-making. This effort includes planning for climate resilience through projects that mitigate climate risk in our operations and prioritize climate opportunities in our investments. Canal Corporation, a subsidiary of NYPA, is charged with maintaining minimum water depths for navigation in the Cayuga-Seneca, Champlain, Erie and Oswego Canals. In order to do so, an average volume of 280,000 cubic yards of sediment is dredged annually and held in Upland Disposal Sites (UDS) permitted by the New York Department of Environmental Conservation (NYSDEC). The required on-land storage at UDSes are nearing capacity, and disposal opportunities are costly, both economically and environmentally. Novel energy storage technology developed by NREL provides an opportunity for meeting NYPA's need to find reuse options for dredged materials and commitment to providing clean reliable energy. This would also support NYPA's goal of developing 300 MW of utility scale storage and enabling 150 MW of distributed storage by 2030. NREL will consult NYPA on the environmental and economic impact of reusing dredged materials as useful commodities such as energy storage media, construction sand or industrial uses. Test and material characterization methods will be based on current NREL storage material characterization approaches. NREL worked with NYPA on sample preparation, material testing, test results analysis. Test and material characterization methods were based on current NREL storage material characterization approaches. The team analyzed the environmental and economic impact of reusing dredged materials as useful commodities such as energy storage media, construction sand or industrial uses. The test and analysis works have achieved the project goal in characterizing NYPA dredging materials and verifying their various uses including construction sand and thermal energy storage media. Uses of dredging materials as useful materials will bring economic and environmental benefits and avoid disposal costs.
International frameworks for climate mitigation that build from national actions have been developed under the United National Framework Convention on Climate Change and advanced most recently through the Paris Climate Agreement. In parallel, sub-national actors have set greenhouse gas (GHG) reduction goals and developed corresponding climate mitigation plans. Within the U.S., multi-state coalitions have formed to facilitate coordination of related science and policy. Here, utilizing the forum of the NASA Carbon Monitoring System’s Multi-State Working Group, we collected and reviewed climate mitigation plans for 11 states in the Regional Greenhouse Gas Initiative region of the Eastern U.S. For each state we reviewed the (a) policy framework for climate mitigation, (b) GHG reduction goals, (c) inclusion of forest activities in the state’s climate action plan, (d) existing science used to quantify forest carbon estimates, and (e) stated needs for forest carbon monitoring science. Across the region, we found important differences across all categories. While all states have GHG reduction goals and framework documents, nearly three-quarters of all states do not account for forest carbon when planning GHG reductions; those that do account for forest carbon use a variety of scientific methods with various levels of planning detail and guidance. We suggest that a common, efficient, standardized forest carbon monitoring system would provide important benefits to states and the geographic region as a whole. In addition, such a system would allow for more effective transparency and progress tracking to support state, national, and international efforts to increase ambition and implementation of climate goals.
The rapid growth of air traffic has drawn attention to aircraft-induced environmental impact. Aviation operations affect the environment mainly through the release of emissions and by the formation of contrails. Recent research has shown that altering aircraft cruise altitudes can reduce aviation environmental impact by reducing Absolute Global Temperature Change Potential, a climate assessment metric that adapts a linear system for modeling the global temperature response to aviation emissions and contrails. However, these methods will increase fuel consumption that leads to higher operational costs imposed on airlines resulting in reluctance to adopt a new routing strategy. This paper evaluates the tradeoff between environmental impact reduction and the corresponding added operational costs for enroute air traffic. The concept of social cost of carbon and the carbon auction price from California's recent cap-and-trade system were used to provide estimates and a methodology to evaluate environmental costs for carbon dioxide emissions and contrail formations. Depending on the specific environmental policy, the strategy is considered favorable when the reduction in environmental costs exceeds the increase in operational costs. The results show how the net environmental bene t varies with different decision-making time horizons, different carbon and fuel costs, and different days. The study provides guidance towards the development of the environmental reduction strategies.
Biofuel mandates can impact the environment in multiple ways that may be positive or negative, including affecting life-cycle greenhouse gas (GHG) emissions by displacing fossil fuels, affecting soil carbon stocks due to accompanying land use change, and water quality due to changes in fertilizer requirements and the mix of crops used as feedstocks. To achieve desired environmental outcomes in the presence of a biofuel mandate, additional policy instruments must be adopted to supplement the mandate. We develop an integrated and spatially explicit ecosystem-economic modeling framework to analyze the cost-effectiveness of alternative policies to achieve desired targets for GHG emissions reduction from the agricultural and fuel sectors in the USA and nitrate leaching reduction in the Gulf of Mexico below the levels that would be achieved by a corn ethanol and/or a cellulosic ethanol mandate in the USA. We find that while a corn ethanol mandate lowers GHG emissions, it increases nitrate leaching due to the expansion of corn production; a cellulosic ethanol mandate lowers both GHG emissions and nitrate leaching relative to a corn ethanol mandate, but the additional carbon and nitrate prices are needed to achieve anticipated GHG reduction and nitrate reduction targets. We also find that accompanying a biofuel mandate with a GHG reduction target alone leads to substantial nitrate reduction co-benefits, but a nitrate reduction target alone is less effective in reducing GHG emissions. Combining a GHG standard with a nitrate standard can achieve GHG and nitrate reduction targets at lower carbon and nitrate prices as compared to implementing each of these policies independently. Furthermore, our findings show that disregarding policy co-benefits can overestimate the GHG and nitrate prices needed to achieve policy targets and higher policy costs.
Abstract Quantifying carbon fluxes into and out of coastal soils is critical to meeting greenhouse gas reduction and coastal resiliency goals. Numerous ‘blue carbon’ studies have generated, or benefitted from, synthetic datasets. However, the community those efforts inspired does not have a centralized, standardized database of disaggregated data used to estimate carbon stocks and fluxes. In this paper, we describe a data structure designed to standardize data reporting, maximize reuse, and maintain a chain of credit from synthesis to original source. We introduce version 1.0.0. of the Coastal Carbon Library, a global database of 6723 soil profiles representing blue carbon‐storing systems including marshes, mangroves, tidal freshwater forests, and seagrasses. We also present the Coastal Carbon Atlas, an R‐shiny application that can be used to visualize, query, and download portions of the Coastal Carbon Library. The majority (4815) of entries in the database can be used for carbon stock assessments without the need for interpolating missing soil variables, 533 are available for estimating carbon burial rate, and 326 are useful for fitting dynamic soil formation models. Organic matter density significantly varied by habitat with tidal freshwater forests having the highest density, and seagrasses having the lowest. Future work could involve expansion of the synthesis to include more deep stock assessments, increasing the representation of data outside of the U.S., and increasing the amount of data available for mangroves and seagrasses, especially carbon burial rate data. We present proposed best practices for blue carbon data including an emphasis on disaggregation, data publication, dataset documentation, and use of standardized vocabulary and templates whenever appropriate. To conclude, the Coastal Carbon Library and Atlas serve as a general example of a grassroots F.A.I.R. (Findable, Accessible, Interoperable, and Reusable) data effort demonstrating how data producers can coordinate to develop tools relevant to policy and decision‐making.
Climate policy in the United States is currently guided by public-private partnerships and actions at the local and state levels. This mitigation strategy is made up of programs that focus on energy efficiency, renewable energy, agricultural practices and implementation of technologies to reduce greenhouse gases. How will policy makers know if these strategies are working, particularly at the scales at which they are being implemented? The NASA Carbon Monitoring System (CMS) will provide information on carbon dioxide fluxes derived from observations of earth's land, ocean and atmosphere used in state of the art models describing their interactions. This new modeling system could be used to assess the impact of specific policy interventions on CO2 reductions, enabling an iterative, results-oriented policy process. In January of 2012, the CMS team held a meeting with carbon policy and decision makers in Washington DC to describe the developing modeling system to policy makers. The NASA CMS will develop pilot studies to provide information across a range of spatial scales, consider carbon storage in biomass, and improve measures of the atmospheric distribution of carbon dioxide. The pilot involves multiple institutions (four NASA centers as well as several universities) and over 20 scientists in its work. This pilot study will generate CO2 flux maps for two years using observational constraints in NASA's state-of -the-art models. Bottom-up surface flux estimates will be computed using data-constrained land and ocean models; comparison of the different techniques will provide some knowledge of uncertainty in these estimates. Ensembles of atmospheric carbon distributions will be computed using an atmospheric general circulation model (GEOS-5), with perturbations to the surface fluxes and to transport. Top-down flux estimates will be computed from observed atmospheric CO2 distributions (ACOS/GOSAT retrievals) alongside the forward-model fields, in conjunction with an inverse approach based on the CO2 model of GEOS ]Chem. The forward model ensembles will be used to build understanding of relationships among surface flux perturbations, transport uncertainty and atmospheric carbon concentration. This will help construct uncertainty estimates and information on the true spatial resolution of the top-down flux calculations. The relationship between the top-down and bottom-up flux distributions will be documented. Because the goal of NASA CMS is to be policy relevant, the scientists involved in the flux modeling pilot need to understand and be focused on the needs of the climate policy and decision making community. If policy makers are to use CMS products, they must be aware of the modeling effort and begin to design policies that can be evaluated with information. Improving estimates of carbon sequestered in forests, for example, will require information on the spatial variability of forest biomass that is far more explicit than is presently possible using only ground observations. Carbon mitigation policies being implemented by cities around the United States could be designed with the CMS data in mind, enabling sequential evaluation and subsequent improvements in incentives, structures and programs. The success of climate mitigation programs being implemented in the United States today will hang on the depth of the relationship between scientists and their policy and decision making counterparts. Ensuring that there is two-way communication between data providers and users is important for the success both of the policies and the scientific products meant to support them..
The Inflation Reduction Act of 2022 (IRA) and the Infrastructure Investment and Jobs Act of 2021, commonly referred to as the 'Bipartisan Infrastructure Law (BIL),' collectively represent the largest commitment of the U.S. Federal Government to invest in the modernization and decarbonization of the U.S. energy system. The Congressional Budget Office (CBO) estimates that total support for the broad range of climate and clean energy programs, tax credits, and other incentives authorized through the two laws will exceed $430 billion from 2022 through 2031 (CRS 2022; CBO 2021, 2022). While the climate and clean energy provisions are numerous and have the potential to impact all aspects of the U.S. energy system from fuel and electricity production to final consumption in industry, transportation, and buildings, the provisions relevant to the electricity sector - in particular the suite of tax credits for clean generation, storage, and carbon dioxide ( CO 2 ) capture and storage - are expected to be some of the most consequential in terms of emissions reduction and clean energy deployment (Larsen et al. 2022; Jenkins, Mayfield, et al. 2022; Mahajan et al. 2022; Zhao et al. 2022). In this report, we detail the methods and results of a study estimating the potential impacts of key provisions of IRA and BIL on the contiguous U.S. power sector from present day through 2030. The analysis employs an advanced power system planning model, the Regional Energy Deployment System (ReEDS), to evaluate how major provisions from both laws impact investment in and operation of utility-scale generation, storage, and transmission, and, in turn, how those changes impact power system costs, emissions, and climate and health damages. While not exhaustive in capturing every provision, the analysis estimates the possible scale of power-sector impacts that could result from the modeled provisions in IRA and BIL. The study is structured around two scenarios to evaluate the potential impacts of both laws on the power sector: 1) No New Policy: A counter-factual scenario that reflects all Federal and state policies enacted as of September 2022, with exception to IRA and BIL, and assumes load growth consistent with the Energy Information Administration's Annual Energy Outlook 2022 (AEO22) Reference case (EIA 2022a); 2) IRA-BIL: A scenario reflecting all Federal and state policies enacted as of September 2022, including key IRA and BIL provisions, most notably the investment and production tax credits for zero-carbon emitting electricity generation and storage (ITC and PTC), the tax credit for CO 2 capture and storage (45Q), and the tax credit for existing nuclear plants (described further in Section 2.3). To account for the impacts of IRA and BIL on electrification, assumes increased load growth consistent with a scaled version of the Medium Electrification scenario from the Electrification Futures Study (Mai et al. 2018). These scenarios are simulated across seven sets of assumptions with varying projected future electricity market conditions, including technology costs and performance, natural gas prices, and the degree of availability, feasibility, and cost of development of renewable resources, electricity transmission, and CO 2 pipeline, injection, and storage infrastructure. In addition, we simulate two sensitivities on the 'policy' treatment in which we vary key assumptions pertaining to the realized value of the clean electricity ITC and PTC: 1) the cost of monetization of tax credits, and 2) the level of bonus crediting realized by project developers. We demonstrate that IRA and BIL have the collective potential to drive substantial growth in clean electricity by 2030, while reducing costs for consumers, mitigating climate change, and decreasing the human health impacts of power sector emissions. However, we also demonstrate that if expected cost improvements of clean technologies are not realized and/or constraints on deployment driven by factors such as supply-chain challenges, regulatory hurdles, and the social acceptability of energy infrastructure development limit the rate of clean energy and associated infrastructure deployment (such as transmission), then the share of clean generation achieved and the associated emissions benefits realized may be substantively reduced.
Dramatic reductions in solar, wind, and battery storage costs create new opportunities to reduce emissions and costs in China’s electricity sector, beyond current policy goals. This study examines the cost, reliability, emissions, public health, and employment implications of increasing the share of non-fossil fuel (“carbon free”) electricity generation in China to 80% by 2035. The analysis uses state-of-the-art modeling with high resolution load, wind, and solar inputs. The study finds that achieving an 80% carbon free electricity system in China by 2035 could reduce wholesale electricity costs, relative to a current policy baseline, while maintaining high levels of reliability, reducing deaths from air pollution, and increasing employment. In our 80% scenario, wind and solar generation capacity reach 3 TW and battery storage capacity reaches 0.4 TW by 2035, implying a rapid scale up in these resources that will require changes in policy targets, markets and regulation, and land use policies.
Abstract This study evaluated a commercial technology for producing low‐ or negative‐carbon hydrogen through ethanol catalytic oxidative reforming, focusing on the life cycle greenhouse gas emissions, or carbon intensity (CI). Various scenarios were analyzed: (a) comparing corn ethanol (first‐generation or Gen1 ethanol) and cellulosic ethanol (second‐generation or Gen2 ethanol) as feedstocks; (b) assessing carbon capture and sequestration (CCS) for CO 2 from upstream fermentation; and (c) evaluating oxygen sourcing via air separation units vs. on‐site or off‐site water electrolysis using a proton exchange membrane. Findings indicate that the CI for hydrogen production using Gen2 ethanol from corn stover is lower than that of Gen1 corn ethanol. Additionally, using proton exchange membrane‐generated oxygen results in a lower CI than air separation unit‐generated oxygen, regardless of the sourcing method. Implementing CCS for the hydrogen production plant's evolved CO 2 is essential for achieving a net‐negative CI for hydrogen from Gen1 ethanol. All examined scenarios, including both ethanol generations, oxygen sources, and CCS applications, demonstrated a net‐negative carbon intensity, surpassing the life cycle greenhouse gas emissions threshold of 0.45 kg CO 2 e/kg to enable policy credits as outlined in the Inflation Reduction Act §45V. In comparison, the CI for hydrogen from steam methane reforming stands at 3.4 kg CO 2 e/kg with CCS and 9.4 kg CO 2 e/kg without CCS.
This study presents a novel bioeconomy optimization framework, BiOpt, designed to address critical questions regarding the strategic use of limited US biomass resources for biofuel production. By integrating detailed techno-economic analyses, life cycle assessments, and resource assessment data, BiOpt optimizes resource distributions across competing technologies to maximize economic performance and/or minimize greenhouse gas emissions. Using feedstock scenarios from the 2023 Billion Ton Study, the analysis explores optimal biomass allocations across sustainable aviation fuel, diesel, and marine biofuel conversion pathways given varying production targets and policy incentives. Results demonstrate distinct feedstock preferences and pathway utilizations when prioritizing economic returns vs. emissions reductions. For instance, fats, oils, and greases were highly favored in cost-optimized scenarios, while low-carbon feedstocks such as wet waste dominated greenhouse gas-minimized strategies. The findings underscore the pivotal role of policy incentives and technological advances in shaping biofuel supply chains and provide actionable insights for scaling sustainable biofuel production to decarbonize hard-to-electrify sectors. This framework offers a robust tool for policymakers and stakeholders to evaluate biofuel strategies that balance energy output, economic viability, and environmental impact.
To help meet its near-term NDC goals and long-term net-zero 2070 target, the Government of India has planned to establish a Carbon Credit Trading Scheme (CCTS), i.e. a domestic emission trading scheme (ETS). An ETS is an inherently cost-effective policy instrument for emission reduction, providing the greatest flexibility to reduce emissions from within and across sectors. An effective ETS requires design features that consider country-specific challenges and reflect its role within the larger policy package to achieve long-term emission reduction. Within the Indian context and in this study we therefore investigate—(i) what might be the role of the ETS in achieving India’s long-term mitigation targets? (ii) How might the various sectors interact under an emissions cap? (iii) How might the ETS interact with existing energy and climate policies? We do this analysis by running four main scenarios using the integrated assessment model GCAM (v6.0), adapted to India-specific assumptions and expectations. These scenarios are—(i) NZ (net-zero), (ii) NZ + ETS, (iii) NZ + CC (command and control), and (iv) NZ + RPO (renewables purchase obligations) + ETS. The NZ scenario assumes India’s near-term and long-term climate commitments of net zero by 2070. Scenarios with ETS (ii) and (iv) apply an emissions cap on four sectors—electricity, iron and steel, cement, and fertilizer. The scenario with CC applies a homogenous emission cap on each of the chosen sectors but does not allow cross-sectoral trading. The last scenario includes renewables purchase obligations (RPOs along with an ETS. We show that under a specific ETS emissions cap: (i) the electricity sector emerges as the largest source of cost-effective greenhouse gas (GHG) reduction options; (ii) ETS with trading across sectors is around 24% more cost-effective than ETS with trading only within sectors, (iii) RPOs can be complementary to an ETS although the impact of RPOs on GHG reductions in the electricity sector would need to be considered when setting the level of the ETS cap (or emissions intensity targets) or the RPO targets to avoid low carbon prices, and (iv) the direction and volume of financial transfers across sectors depends on allocation targets set by the government. Based on these results we provide design recommendations for India’s ETS.
Recent research has shown the energy-saving potential of occupancy-based HVAC controls (OBCs) in commercial buildings. However, building energy codes have not fully adopted this technology. This study aims to evaluate the cost-effectiveness and decarbonization benefits of OBCs and provide guidance for integrating occupancy sensors into building energy code development. To this end, a parametric simulation using EnergyPlus and a nationwide cost-effectiveness analysis are carried out considering three building types and 40 representative cities in the U.S. Here, the findings reveal that the current cost-effectiveness performance of OBCs is limited due to the high cost of occupancy sensors. However, incorporating the societal cost of carbon factor in future energy and environmental policy could greatly enhance the actual cost-effectiveness performance. Besides, a reduction in the cost of occupancy sensors to approximately 60% of the current price level could also greatly shorten the discounted payback period of OBCs. Additionally, OBCs demonstrate significant potential in building decarbonization, with potential CO 2 emissions savings of more than 5.56 million metric tons across the three building types and 40 selected cities. Finally, policy implications are provided to guide the incorporation of occupancy-based HVAC controls in future energy codes.
States and the federal government are increasingly engaged in the challenges around decarbonizing the electric grid. In particular, regulators, consumers, stakeholders, and utilities recognize the need to carefully consider the role natural gas will play in a decarbonized future. A variety of technology and policy options to reduce greenhouse gas emissions associated with natural gas use are available, including energy efficiency programs, demand reduction tools, strategic electrification, and strategies to reduce emissions from natural gas production, transportation, and consumption. Low-carbon fuels – mainly renewable natural gas (RNG) and clean hydrogen – are being considered an important component of decarbonization goals. RNG and hydrogen may be able to meaningfully reduce emissions from processes independent of geologic natural gas, displacing emissions of methane, a powerful greenhouse gas. Although RNG and hydrogen are not cost-competitive today with geologic natural gas and are smaller in scale and potential than other decarbonization options, they can be explored as potential critical tools to decarbonize sectors that are difficult to electrify or shift off of natural gas entirely, such as air travel, industrial processes, maritime transport, long-distance trucking, space heating on cold days, and railroads (Nadel, 2022). The role of this report is to provide informational context for state utility regulators to understand the impacts of and challenges associated with broader integration of low-carbon fuels, followed by examples of state regulatory actions taken to date to facilitate the development of low-carbon fuels. Setting clear guidance to calculate the environmental benefits of low-carbon fuels and continuing federal and state investments in research and development to reduce costs relative to fossil fuels will be important steps to take to signal the desire to grow the market for these fuels. State public utility commissions may play a key role in setting regulatory frameworks for low-carbon fuels and ensuring that ratepayer funds, if utilized, are done so to further the public interest. This report is intended to summarize decisions that states have made to date on low-carbon fuels. In the spirit of understanding the current market and sharing information, this report provides success stories, and lessons learned across states as regulators implement varying strategies to achieve decarbonization objectives while maintaining their focus on affordability, safety, and reliability of the energy system. The report begins with an introduction of the role of natural gas in the U.S. economy (Section I) and background information on natural gas use, decarbonization, and low-carbon fuels (Section II). Next, the report describes the current market by discussing the scale of current production, emissions intensity, resource potential, and costs of low-carbon fuels compared to geologic natural gas (Section III). Following these sections, the report describes four strategies states have employed to facilitate low-carbon fuels: opening exploratory dockets, approving voluntary tariffs for customers, approving interconnection tariffs for producers, and considering portfolio-wide procurement targets (Section IV). This section lists states that have taken actions in each category, citing utility filings, commission decisions, stakeholder comments, and other relevant sources. Finally, the report concludes with suggested questions regulators may wish to consider regarding low-carbon fuels, in the interest of preparing to make decisions in the future (Section V). These questions include: Are there existing regulatory or technical barriers to voluntary purchases of low-carbon fuels? Can customers work with utilities to procure low-carbon fuels; are producers able to interconnect projects without significant barriers to entry? Should the infrastructure and/or commodity costs of low-carbon fuels be socialized among all ratepayers, or borne solely by the large commercial and industrial (C&I) customers currently driving the market? Should regulated natural gas and/or electric utilities own and operate low-carbon fuel production? How should regulators consider the unique decarbonization potential of low-carbon fuels, particularly for hard-to-abate sectors, in decision-making? Is additional direction or clarity from state policymakers needed? What no-regrets approaches can help facilitate both near-term RNG development and long-term development of hydrogen and other zero-carbon fuels? We collectively wish to express our gratitude to the U.S. Department of Energy, Office of Fossil Energy and Carbon Management, for supporting this report and other technical assistance resources for state regulators on natural gas topics. State regulators operate under a variety of policy environments, and states have vastly different types of energy resources, infrastructure, and customers. While there is no optimal regulatory, policy, or technological solution that will be successful in every state, state regulators can benefit by exchanging lessons learned with their peers across the country. We look forward to continued engagement with our fellow commissioners, commission staff, NARUC, the U.S. Department of Energy, and other stakeholders to develop sound regulation in the public interest.