Federal Policy

Innovation and competition stand as hallmarks of the American economy in every sector, including advanced energy. Markets that encourage these qualities support business growth. Federal energy policy should reflect these values to yield a secure and reliable energy system. Over the past decade, the American energy system has witnessed the greatest deployment of new energy technologies in our history, as new and innovative resources drive down costs and enhance reliability. Federal policy has played a vital role in this process, and has a continuing role to play in promoting innovation and competition to improve the U.S. energy system.

AEE’s Federal Policy Program develops and advocates for federal policies that create market opportunities for advanced energy companies. Central to this work is promoting legislation and regulation that seek to remove market barriers for advanced energy technologies. The program also supports and defends existing federal policy that encourages greater deployment of advanced energy. We believe offering innovative and bipartisan policy approaches that reflect our companies’ expertise will expand business opportunities for all segments of the advanced energy industry and contribute toward economic prosperity in this country. AEE’s federal policy work benefits from the input and guidance provided by its Federal Affairs Business Council, comprised of businesses that are part of a $200 billion market in the United States.

As part of this work, AEE’s Federal Policy Program is actively engaged at the Federal Energy Regulation Commission (FERC) to reduce barriers for advanced energy technologies in the energy markets overseen by FERC.

Click the links on the left to see reports and other products related to this initiative.

Wholesale Power Markets Engagement (FERC)

AEE’s Wholesale Power Markets Engagement initiative aims to open existing wholesale power markets to advanced energy technologies through better market design.

AEE engages directly with regulators at the Federal Energy Regulatory Commission (FERC), grid operators at the seven regional transmission operators (RTOs) and independent system operators (ISOs), and the U.S. Congress to encourage greater deployment of advanced energy in these markets.

AEE believes that these competitive wholesale power markets can be a tool for modernizing the electric power system for the 21st century. Unfortunately, many of the rules governing how wholesale power markets operate were designed with old technologies in mind, and in some cases act as barriers to competition for some advanced energy technologies. With rules that encourage technology-neutral competition on price and performance, advanced energy can thrive—encouraging innovation, driving down consumer costs, and improving reliability and resiliency in the process.

Comments on FERC Notice of Proposed Rule on Energy Storage and Aggregated Distributed Energy Resources – Download comments on Proposed Rule on Storage and aggregated DER

Download comments on FERC Inquiry on Barriers to Energy Storage >

A FERC challenge: Opening up electricity markets to advanced energy technologies – Download Commentary on access to markets >

Comments to FERC on competition in transmission development

Accelerating Advanced Energy in America

The Advanced Energy Economy Institute, AEE’s educational and charitable affiliate, commissioned a leading industry consultancy, PA Consulting Group, to interview CEOs and top executives of advanced energy companies, across a wide range of technologies and services, about how federal policies affect their businesses. The consultants interviewed companies big and small, established and start-up, technology focused and service-oriented. Here's what they heard:

  • Business leaders want stability and predictability in market structures.
  • They want a level playing field with their competitors – with traditional energy, and with each other.
  • They want government to support research across a wide range of technologies.
  • They want subsidies that make new technologies more competitive to be limited in duration, and phased out in a gradual, predictable manner, not maintained forever or cut off after arbitrary deadlines.
  • They want government policies crafted around broad problems, rather than pre-ordained solutions, so that the market can identify the best ways forward.

Click to read the press release and a summary of the report.

Federal Tax Principles

In consultation with industry leaders, AEE has developed a core set of principles for energy tax reform. These principles will shift the current tax code to one that supports emerging technologies, ends permanent subsidies to mature technologies, is technology neutral, and provides certainty and market stability.

Click here to view the press release, and here to view AEE CEO Graham Richard's op-ed in The Hill.

Testimony and Comment Letters

AEE actively engages in advocacy for business-focused policies to enable rapid growth of advanced energy businesses. This advocacy includes testimony before Congress and comment letters to committees and federal agencies.

Letter to FERC

AEE wrote to the Federal Energy Regulatory Commission in regards to two issues of great consequence to the future of the demand response industry: the "D.C. Circuit Decision" and the Complaint filed by FirstEnergy in PJM.

Letter to Senate Finance Leadership

AEE wrote to Senate Finance Committee Chairman Ron Wyden and Ranking Member Orrin Hatch encouraging them to take up the extension of expired advanced energy tax credits when Congress reconvenes after the election in November.

Letter to House Ways & Means Leadership

AEE wrote to House Ways and Means Committee Chairman Dave Camp and Ranking Member Sander Levin encouraging them to take up the extension of expired advanced energy tax credits when Congress reconvenes after the election in November.

Letter to Senate Leadership in Support of Shaheen-Portman Energy Efficiency Bill

AEE wrote to Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell encouraging them to bring bipartisan energy efficiency legislation (S. 2074) co-sponsored by Sen. Jeanne Shaheen and Sen. Rob Portman to the Senate floor.

Letter to House Ways and Means Chair Regarding Tax Reform

AEE wrote to House Ways and Means Chairman Dave Camp in April 2014 to provide comments on the energy provisions of his tax reform proposal.

Comments to the Senate Finance Committee on Energy Tax Reform

AEE and AEE Members prepared comments on the Senate Finance Committee's staff discussion draft on energy tax reform.

Comment Letter to the Senate Finance and House Ways and Means Committees on Energy Tax Reform

Advanced energy business leaders write the House Ways and Means and Senate Finance Committees to show strong support for the retroactive extension of advanced energy tax credits to ensure stability and certainty for businesses and investors. More than 60 businesses and advanced energy business organizations signed on in support of the tax extenders.

Comment Letter to General Services Administration on Domestic Delivery Service Contract

AEE wrote to the General Services Administration urging that its pending Delivery Service contract require vendors to meet goals for reducing emissions, cutting petroleum use, and increasing the use of alternative fuel vehicles.

Comment Letter to House Ways & Means Committee's Energy Work Group on Tax Reform

AEE submitted comments to the House Ways & Means Committee's Energy Work Group on Tax Reform arguing for core tax principles to guide tax reform.

Testimony before the Subcommittee on Energy Science, Space and Technology

In testimony before the U.S. House of Representatives Subcommittee on Energy Science, Space and Technology, AEE Senior Vice President of Policy and Government Affairs Malcolm Woolf called on Congress to utilize a core set of principles to reorient federal financial support to more effectively encourage private sector innovation and promote a secure, clean and affordable energy future.

Watch his testimony below