9 hot energy issues: states are looking at a number of energy issues--some old, some new--this year.

The energy spotlight has moved. No longer are states concerned with opening markets to competition. Today they're looking at a host of issues that improve the environment, save money for consumers, ensure the power is there when we need it, and decrease our reliance on foreign oil.

1 Conserving Energy in State Buildings. It saves money while increasing the reliability of the electricity system. New Ha\en, Conn., saved $500,000 in one year by cutting energy use in municipal buildings. Arizona, Hawaii, Indiana, Montana, New Mexico, Utah, Virginia and Washington are also requiring of providing incentives for reducing energy use in state buildings.

The states that are looking at it: Connecticut, Illinois and New Jersey are considering actions to either require or encourage energy efficiency in buildings owned by the state.

2 Cleaning Up the Air. Smog, soot and acid rain are still a problem in a number of states. Polluted air is a health hazard, as well as the culprit in altering the earth's climate. North Carolina significantly reduced sulfur dioxide (S[O.sub.2]) and nitrous oxide (N[O.sub.x]) emissions through its 2002 Clean Smokestacks Act. New Hampshire and Massachusetts also have strong legislation.

The states that are looking at it: Virginia is considering cutting production of sulfur dioxide by 88 percent, nitrogen oxide by 75 percent and mercury by 90 percent.

3 Reconsidering Electricity Deregulation. Competition seemed like a good idea that would offer customers the option of choosing suppliers while cutting costs. But when California first tried it--and encouraged utilities to get out of the business of generating power--it resulted in rolling blackouts two years ago.

The states that are looking at it: California is considering bills to encourage utilities to get back into the generating business and improve the way utilities buy electricity for resale to their customers. Massachusetts is considering legislation that would reconfigure--again--the way residential customers buy power.

4 Making Appliances Efficient. States are going beyond the federal efficiency rules to help consumers save energy--and money over the long run--by setting standards of energy efficiency for a variety of products. Maryland's new standards apply to an assortment of appliances and fixtures from ceiling fans to traffic lights. Estimates are that the new law could save enough energy by 2010 to power some 75,000 households. Maine and New Hampshire also have appliance standards.

States that are looking at it: Connecticut, Florida, Illinois, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania and Rhode Island are looking of have looked very recently at setting or modifying standards.

5 Turning to Renewable Energy. Wind, solar, biomass, geothermal and small scale hydropower energy continue to hold promise. Fifteen states have a renewable energy portfolio standard in place that requires power retailers to include a specific amount of renewable energy in the mix of power they sell to their customers. Pennsylvania, one of the first to adopt a standard, is considering revamping its policy to incorporate some elements of effective programs in other states.

States that are looking at it: In addition to Pennsylvania, others, including Colorado, New Mexico, Maryland, Vermont and Washington are considering legislation for a renewable energy portfolio standard this year. Idaho and Utah are considering bills that would give tax incentives to certain renewable energy technologies.

6 Looking Again at Wind. It has been the fastest growing energy technology for the past several years, and in 2003, 13 states including California, Colorado, Illinois, Minnesota, New Mexico, North Dakota, Oklahoma, Oregon, Pennsylvania, South Dakota, Texas, Washington and Wyoming--created or expanded large-scale wind farms. But wind energy is starting to face resistance from some organizations that claim the turbines interfere with the landscape and can be dangerous to birds, although the hazards to birds have for the most part been limited to a single California wind site built in the 1980s.

States that are looking at it: Kansas and Vermont are considering temporary bans on new wind-energy facilities.

7 Capping Gasoline Prices. Ask most people what they pay for electricity or what they pay for natural gas, and they probably don't know. Ask them what today's gasoline prices are, and they probably do. There are few energy issues that attract more attention than gasoline--even though legislators probably have less control over gasoline prices and supply than they do over any other energy commodity. Gasoline prices have been taking a gradual uphill ride for the last couple of years. It's not uncommon now to see prices close to $1.70 per gallon, or in a few places much higher. Some state legislatures have begun to take a more serious look at just what drives gasoline prices. In a few states, legislators suspect that oil companies may be manipulating gasoline prices.

States that are looking at it: Hawaii, Arizona and Michigan are taking a hard look at gasoline prices and considering price caps, monitoring programs or other solutions.

8 Transmitting Energy Reliably. The federal energy bill proposes shifting much of the responsibility for permitting electricity lines from states to the federal government. States, however, aren't waiting to revise and improve their own permitting processes. Wisconsin streamlined the review process for new power plants, transmission lines and natural gas pipe-lines, shortened the timeline for approval, and now requires using existing transmission paths, if possible.

States that are looking at it: Georgia, which hasn't had an official permitting process, is considering a law to issue permits to build electricity lines. Connecticut, Florida and Hawaii have recently looked or are now looking at their transmission laws.

9 Weaning Cars from Gasoline. The United States is almost completely dependent on petroleum to fuel cars, trucks and buses, and our reliance on foreign oil is increasing. Developing alternative fuels may be the answer.

States that are looking at it: New Jersey is considering several bills related to fuel cell powered vehicles (hydrogen), electric vehicles and other alternative fuel vehicles. The state is looking at buying hydrogen-powered cars, reducing the sales tax on electric vehicles and providing an income tax credit to those who buy them. Michigan and Vermont are considering bills to provide tax incentives for battery, hybrid or fuel-cell electric vehicles, while New York may offer tax incentives for hybrid electrics. Virginia may exempt vehicles that receive an EPA rating of at least 50 mpg from emission tests.

ECONOMIC RECOVERY WILL BRING NEW ISSUES

Energy drives the economy, affects the natural environment and links to everything from transportation to growth management to health policy. As the economy recovers, states will face new energy issues. The country's hunger for gas, oil, new power plants and power lines will renew fervent debates about how efficiently we use energy and whether we need to build new pipelines, power lines or plants. The best new natural gas reserves are now offshore and are likely to engender an entirely new debate about importing gas through liquefied natural gas facilities or from offshore wells. The concerns that have existed in the states for the past decade about regulation, diversity of energy supplies, energy prices and the environment are likely to grow more intense.