States Will Continue to Push Environmental Action Forward in 2025

States enter the 2025 legislative session at the forefront of environmental policy. Following the 2024 elections, states matter more than ever for movement and action on the environment. With promises of environmental rollbacks and roadblocks at the federal level, states can hit the ground running in the new year to shape policy successes on these critical issues in the 2025 legislative session. 

IRA Funding Opportunities | Energy Project Permitting | Coastal Resiliency | Blue Economy | Urban Biodiversity | Wetlands Protections | STORM ACT Funding | PFAS

(Please note bills with ‘**’ denote bipartisan support)

Inflation Reduction Act Funding Opportunities

While the fate of the IRA is now unclear, state legislators can still take action through various legislative and funding tools to ensure they receive the full benefits.

• Direct Pay: To maximize the funding in the IRA, state legislators can devote resources to establish an “Elective Pay technical assistance” hub for state agencies to leverage project finance, tax, and accounting expertise. Legislators can also encourage or require state licensing of accounting professionals to include education on clean energy tax credits and the use of elective pay. 

• Green Banks and State Energy Financing: State leaders can look to establish a state green bank and designate another agency as a State Energy Financing Institution (SEFI). Increasing funding for state energy offices, especially for the capacity to manage federal clean energy finance, can better prepare states for energy crises and grid modernization. 

• Greenhouse Gas Reduction Fund: The EPA’s Greenhouse Gas Reduction Fund is a $27 billion investment to mobilize climate financing and to promote energy independence with lower energy costs. States are taking advantage of this funding to lower barriers to the benefits of clean energy for their communities.

Getting Clean Energy Projects in the Ground Through Permitting and Transmission

Following the election, the prospect of meaningful permitting reform on the federal level is very unlikely. However, states have various policy mechanisms available to them to get more clean energy projects in the ground, ensure appropriate transmission, and be interconnected to meet goals.

• Permitting Legislation: Legislation to simplify renewable energy project siting and permitting can greatly benefit the energy market by promoting project development. Some states have already passed legislation to improve this process.
  • Minnesota SF 4942 (enacted 2024): Streamlines the energy permitting process by creating two separate review processes: a standard review for smaller wind and solar projects and power lines and a more intensive review for larger projects.
  • **Washington HB 1216/SB 5380 (enacted 2023): Streamlines permitting by establishing the Interagency Clean Energy Siting Coordinating Council, expediting environmental reviews by amending the State Environmental Policy Act (SEPA), and establishing a new program for the designation of Clean Energy Projects of Statewide Significance (CEPSS).
• Grid-Enhancing Technologies: Grid-enhancing technologies (GETs) include an array of technologies that increase the efficiency and capacity of an  existing transmission line – and the grid as a whole. GETs require only a fraction of the time and money it takes to build new transmission infrastructure from scratch.
  • California SB 1006 (enacted 2024): Requires transmission utilities to investigate grid-enhancing technologies to achieve increased grid capacity and renewable energy and emissions reduction goals. Studies and their economic implications, reliability expectations, and policy goals must be publicly disclosed. 
• Right of Way Legislation: Right of Way (ROW) legislation  encourages utilities, municipalities, and other important entities to co-locate transmission infrastructure on existing rights-of-ways, such as highway or railroad corridors. ROW legislation makes transmission buildout easier by expediting siting processes, minimizing environmental impacts, and alleviating impacts on private landowners and communities.
  • Minnesota H.F.7 (enacted 2023): Encourages existing transmission lines to primarily utilize existing rights-of-way and assess potential routes that would utilize or run parallel to existing railroad and highway rights-of-way.
• Solar Automated Permit Processing+ (Solar APP+): Currently, the permitting process for solar applications is time and resource intensive for local governments, creating one more barrier to accessing renewable energy. As a web-based platform that automates solar permitting for local municipalities, Solar APP+ can serve as an important tool for state leaders to promote clean energy in their communities. This streamlined process also provides transparency for the permitting timeline of a project as well as safety and code compliance.
  • **Colorado HB 1234 (enacted 2023): Creates the The Automated Permit Processing for Solar (APPS) grant program to provide financial assistance to local and Tribal governments to implement automated online solar permitting software, such as SolarAPP+.

Coastal Resiliency

As climate change exacerbates the effects of storms, flooding, and erosion, coastal communities and livelihoods are at risk. Conserving, protecting, and restoring marine ecosystems and areas that decrease flood risk and sea-rise impacts can reduce economic losses. 

• Maryland HB 233 (enacted 2024): Modifies the existing Chesapeake and Atlantic Coastal Bays Critical Area Protection Program. Each project in the program must ensure equitable distribution of burdens and benefits of development, restoration, conservation, and adaptation projects; conserve, restore, or create natural and nature-based features for climate resiliency; and include provisions to ensure public access to the water, shorelines, and other natural areas for underserved and overburdened communities. 
• California SB 852 (enacted 2022): Permits cities, counties, or special districts to establish “climate resilience districts” alone or in partnership to raise revenue through tax increment funding, voter-approved property tax, benefit assessments, or fee supplements. The districts can then use the revenue to finance eligible projects that address climate risks, including living shorelines, flood easements, and structure elevation.

Blue Economy 

The sustainable blue economy encompasses sectors and services dependent on the ocean and coastal waters like fishing, tourism and recreation, shipbuilding, and renewable energy generation. As ocean use increases, the growth of the sustainable blue economy must be thoughtful to ensure marine ecosystems and coastal communities are protected and benefits are equally accessible. 

States can incentivize further growth of the blue economy, promote ocean and coastal conservation, encourage community engagement, and help build the blue workforce of tomorrow. 

• Maine LD 1286 (enacted 2023): Creates a 13-member Blue Economy Task Force within the Office of Business Development to identify opportunities and develop a roadmap for the state’s blue economy to spur sustainable investment and growth. 
• Florida HR 1285 (enacted 2024): Forms The Office of Ocean Economy within the State University System to develop and expand blue economy resources, encourage research and collaboration among ocean users, and develop strategies to ensure ocean and coastal resilience.

Urban Biodiversity

From improving nature access opportunities for urban residents to integrating habitat connectivity into land use planning, states are in a good position to tailor biodiversity policies to the needs of their communities. States can take action on other important conservation issues like outdoor access or pollinator protections through urban biodiversity conservation – all while providing biodiversity benefits to people that live in urban areas.

• California AB 1889 (Enacted, 2024): Requires a city or county general plan to consider the effect of development on habitat connectivity.
• Illinois SB 3908 (enacted, 2022): Amends the Natural Resources Advisory Board’s mandate to include biodiversity protection and promotion of a conservation-literate population. Adds new members to the board including two representing urban conservation interests.

Wetlands Protections

The Sackett v. EPA Supreme Court decision significantly weakened wetland protections. Wetlands serve as the ‘kidneys’ of the Earth–filtering out pollution while restoring ecosystem health. With these limitations at the federal level, it is now up to states to protect and restore these important ecosystems. 

• Indiana SB 246 (enacted, 2024): Allows wetland areas as small as 0.5 acre to be classified as wildlands for reducing property taxes, creating an incentive for those who own property with wetlands to preserve them – wetlands do a service for the broader community by storing stormwater, reducing flooding and helping stormwater replenish groundwater supplies. 
• Illinois HB 5297 (introduced, 2024): Creates the Resilient Illinois Revolving Loan Fund Act to provide low- or no-interest loans to counties and nonprofits for local hazard resilience projects. Requires the Director of the Illinois Emergency Management Agency and Office of Homeland Security (IEMA-OHS) to apply to the Federal Emergency Management Agency when funding is available under the federal STORM Act, which is largely underutilized, to capitalize the Fund.

STORM Act Funding

The Safeguarding Tomorrow through Ongoing Risk Mitigation Act (STORM Act) facilitates the provision of grants that establish hazard mitigation assistance funds. States can enact legislation that uses federal dollars from the STORM Act to reduce risks from natural hazards. As funding expires in FY 2026, with renewal uncertain, states should make the most of the funding now. 

• New Jersey A4866 (enacted 2023): Establishes Community Hazard Assistance Mitigation Program (CHAMP) and a CHAMP revolving loan fund to expand hazard mitigation financing through STORM Act funding. Amends laws relating to New Jersey’s Infrastructure Bank (NJIB) enabling easier application to STORM Act funds. 
• Tennessee SB 2082 (enacted 2024): Creates the Resilient Tennessee Revolving Loan Fund to help facilitate funding received from the STORM Act to municipalities and other entities for hazard mitigation projects.

PFAS 

The overruling of the Chevron Deference earlier this year may limit future EPA regulations on PFAS, however, existing regulations are less likely to be struck down. States are in a unique position to advance comprehensive PFAS policies to protect natural resources and public health.

• Colorado SB 081 (enacted 2024): Prohibits the sale or distribution of certain products if the products contain intentionally added PFAS chemicals. Also prohibits the installation of artificial turf that contains intentionally added PFAS on any property in the state.
• Indiana HB 1189 (enacted 2020): Focuses solely on training and testing, prohibiting the use of PFAS-containing Class B firefighting foam for these purposes after June 30, 2020. Importantly, it does not restrict the manufacture, sale, or distribution of this foam within Indiana.