The Environmental Protection Agency (EPA) is charged under Section 111 of the 1977 Clean Air Act to regulate emissions from major stationary sources. Earlier this year, the EPA proposed a New Source Performance Standard designed to regulate pollution from stationary power facilities.

Based on the 2012 American Energy Outlook, the Standard is designed to ensure that newly installed fossil fuel facilities don't surpass a harmful level of carbon intensity. It allows no more than 1,000 pounds of CO2 per megawatt hour of output for newly constructed plants, but has no impact on current facilities.

New coal powered generators must either install carbon capture and sequestration technology to reduce emissions by approximately one half, or utilize a thirty year averaging option that requires plants to have an average rate of emissions consistent with the Standard over this period. The latter option allows flexibility and ultimately makes coal facilities more

Since the Great Recession, industrial policy has become a fashionable approach to stimulating strategic economic growth. Yet these efforts to develop domestic industry have met conservative opposition grounded in free market ideals and fiscal responsibility. This debate reflects the political and philosophical context within which economic legislation is discussed, and dominates discourse at the expense of constructive policy analysis. Renewable energy subsidies are no exception, and as the Production Tax Credit (PTC) nears expiration, discussion of sustainability and the effective development of America's wind resources is subjugated by an overarching ideological confrontation.

The Production Tax Credit was established under the Energy Policy Act of 1992 as an alternative to failed investment based subsidies. It has been extended periodically over the past two decades with the intention of stimulating efficient, long term wind energy investment. By subsidizing wind power generation per kwh, the PTC promotes turbine innovation and a sustainable rate

Regulatory legislation traditionally follows abrupt economic transformation. How it is tailored has a profound impact on future industry expansion, and reflects the government's ability to align private interests with public benefits. Ohio Senate Bill 315 is no different.

The recently approved energy legislation in Ohio regulates the natural gas industry by instituting oversight that Governor Kasich regards as the toughest in the United States. Senate Bill 315 has provided momentary closure to regulatory uncertainty and articulates state standards for more responsible drilling and distribution practices. Despite being what the Governor regards as "the most aggressive, clearest, fairest and strongest fracking standards you can find anywhere in the country", the natural gas industry has embraced the legislation and welcomed state oversight [1]. In a recent press release, the Executive Director of the Ohio Petroleum Council, Terry Fleming, praised the legislation and commended the state government's efforts to accommodate public

With technological evolution comes an increased dependence on stable energy production and transmission. Not having undergone large scale infrastructural improvements in over fifty years, the American energy grid is due for an overhaul that accounts for modern demand. For example, the average age of a substation transformer in the United States is two years older than its design life. Despite comparatively little utility research and development, the nation's electricity demand continues to rise. Without updating the energy grid to accommodate growing demand in a digital age, energy shortages and transmission inefficiencies threaten power availability and contribute to rising costs. The Illinois 2012 Smart Grid Market Inventory estimates, "Each year power outages and interruptions across the nation cost at least $150 billion, or about $500 for every single American". Meeting these challenges requires government and utility collaboration to determine the alignment of private and public interests.

The smart grid industry

While market forces undoubtedly play a role in a nation's energy infrastructure, policy has proven instrumental in establishing a framework for utility expansion and energy production. The most recent initiative proposed by the Senate is a bill that amends the 1978 Public Utility Regulatory Policies Act (PURPA). Senate Bill 2146, The Clean Energy Standard Act of 2012, is designed to stimulate energy innovation and to promote the installment of low emission alternatives to dirty coal and petroleum. It requires utilities to purchase a percentage of their electricity from clean sources beginning in 2015, and incentivizes long-term investment in cleaner technology. Yet most importantly, the legislation would have positive implications for natural gas. In addition to renewable sources, its definition of clean energy encompasses natural gas (including coal mine methane), and clean coal plants [Senate Bill 2146. pg. 2-3].

This policy reflects a global trend to transform energy infrastructure.