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Signature Redacted-- Solarize America How Policy Networks Adopt and Adapt Good Ideas By MASSACHUSETS iNST1TUTE Ryan Cook OF TECHNOLOGY BA in Sociology JUN19 201i Reed College Portland, Oregon (2009) 'JR-ARI ES Submitted to the Department of Urban Studies and Planning in partial fulfillment of the requirements for the degree of Master in City Planning at the MASSACHUSETTS INSTITUTE OF TECHNOLOGY June 2014 © 2014 Ryan Cook. All Rights Reserved The author hereby grants to MIT the permission to reproduce and to distribute publicly paper and electronic copies of the thesis document in whole or in part in any medium now known or hereafter created. Signature redacted--" Author De t of U ban S tudi s and P f~ing Ma 1, 014 Certified by Signature redacted Professor Lawrence Susskind Department of Urban Studies and Planning n/, / ., Thesis Supervisor Signature redacted_ Accepted by Assodca rofesskr]P. Christopher Zegras hair, MCP Committee Department of Urban Studies and Planning Solarize America How Policy Networks Adopt and Adapt Good Ideas Ryan Cook Submitted to the Department of Urban Studies and Planning on May 21, 2014 in partial fulfillment of the requirements for the degree of Master in City Planning Abstract To address the need for massive change in the adopt new ideas, they take differences in resource electric power industry, state and local actors are availability and institutional capacity into account experimenting with creative policy approaches in both by adapting policies to suit local needs and the clean energy space. I investigate the facilitating by redefining their relationships with each other role that networks play in the production and to better support implementation. Policymakers implementation of these policy ideas. I look at can improve their network's ability to support policy networks through the case of Solarize, a innovation by establishing strong cross-sectoral community-based solar energy group-purchasing ties, by encouraging public agencies to be flexible program that has grown rapidly since its emergence in their relationships with private and civic actors, in 2009. I compare and contrast the strategies of and by consciously learning from and adapting private, public, and civic policy actors that have policy successes elsewhere in ways that reflect local implemented Solarize campaigns in the Pacific constraints. Northwest and in New England. In the Pacific Northwest, a robust set of community organizations has spearheaded a decentralized, grassroots-based approach to Solarize. In New England, where state agencies offer strong and consistent leadership has been primarily a on clean energy, Solarize Thesis Supervisor: Lawrence Susskind government-led program. My central finding Ford Professor of Urban and Environmental Planning is that network attributes guide the efforts of policy entrepreneurs. Networks vary greatly across contexts, as do the pathways they offer for policy development. Ideas that are successful in one state or local network may not be successful in another without modification. When networks of actors 3 4 Acknowledgements I would first like to thank Professor Larry Susskind, who has been incredibly generous with his guidance and wisdom both in the process of writing this thesis and throughout my time at DUSP. I am also thankful for the help of my reader, Alex Aylett, who has shown an uncanny ability to understand and propose solutions to my difficulties in the research process, and for the support that Steve Hammer and my other mentors both at MIT and elsewhere have provided over the years. I am also immensely grateful for the large number of professionals and advocates that took the time to share their thoughts and experiences with me in the course of my research. I aspire to the success that these committed and capable individuals have had in guiding a transition in the energy field. It has been a pleasure to share the past two years with a wonderfully talented group of students and academics in the Department of Urban Studies and Planning and in MIT's broader energy community. I have learned more from you than from any class and your company has made this experience a pleasure. And finally, I would like to thank my family, for everything. 5 6 Table of Contents Clean Energy Policy Experimentation in the United States ....................... 9 M ethods ...................................................................... 13 Introduction to Networked Policy Transfer ....................................... 17 Background on Solar and Solarize ............................................... 23 The Pacific Northwest: Where the Grassroots are Greener .......................... 33 New England: Learning from Above ............................................. 43 D iscussion and Findings ........................................................ 53 Lessons for the Policy Community ............................................... 67 C onclusions .................................................................... 71 R eferences ..................................................................... 73 Appendix A : List of Interviewees ......................... ...................... 77 Appendix A: List of Solarize Campaigns ......................................... 79 7 8 Clean Energy Policy Experimentation in the United States The Spread of Good Policy a group purchasing program for residential solar In an effort to address the many market barriers photovoltaic panels. In a Solarize program, a to the widespread development of clean energy government or civic organization partners with a technologies, policy actors at the state and local single solar contractor on behalf of a community of levels have lately been engaged in a robust and residents, and coordinates a time-limited campaign vibrant process of energy policy innovation. within that community to encourage residents to American cities and states actively experiment with install solar panels with that contractor. In exchange new policy ideas and adopt those that appear to be for large numbers of customer leads and the benefit successful elsewhere. As policy ideas spread, they are of a volunteer-based marketing campaign, the solar adapted to fit local needs and circumstances. 'Ihis installer agrees to offer a solar installation price has led to a complex and constantly shifting set of that is below prevailing market rates.'The Solarize policy solutions to our nation's energy problems. To model emerged in Portland, Oregon in 2009, and understand the current status of clean energy policy contributed to a rapid growth of the local residential to and the prospects for bringing good ideas to scale, solar market. 'The model is widely perceived policymakers must first understand the mechanisms have been successful, and has been replicated in by which state and local governments-and the jurisdictions nationwide. actors that they variety of non-governmental Through Solarize, I examine the manner in which communicate, adopt, and collaborate with-form, policymakers share ideas and learn from each other. adapt these policy solutions. In doing so, I adopt a networked view of policy In this thesis, I hope to add to this understanding formation and transfer. I consider the sets of actors by tracing the development of a policy idea that has from the public, private, and civic sectors that succeeded in one context and rapidly diffused to collaborate to form policy, and the work that they others: a community-based approach to residential do to make external policy ideas suitable for local solar energy called Solarize. Solarize is in essence contexts. 9 Stagnation in Federal Clean Energy needed to create a durable and competitive clean Policy energy market. Renewable energy markets in the United States State governments are particularly well-positioned require strong policy support to continue to grow to impact electricity markets as state-level public and mature. But it is uncertain what this policy utilities commissions have regulatory responsibility support-should it come about at all-will look over privately-owned utilities, which supplied 83% like or where it might come from. In the current of the nation's electricity to end users in 2012.' Local domestic political climate, it appears unlikely that governments, while not possessing the same degree any significant energy policies will be formed at of direct control over energy systems as states,2 have the federal level. While a range of potential policy their own ways to influence clean energy markets, options have been proposed, such as a carbon tax, whether through areas in their direct control or cap-and-trade schemes, or a national renewable through their close working relationships with energy standard, comprehensive legislation to powerful local stakeholders. address energy policy appears unlikely. On the state side, popular clean energy policy 'The most recent attempt, 2009's Waxman-Markey solutions have included renewable portfolio Bill, failed in the Senate and political observers do standards, net energy metering, utility energy not expect Congress to revisit the issue with any efficiency mandates, and tax incentives for clean seriousness in the foreseeable future (Wolfgang, energy installations. Many of these leverage the 2014; McKibben, 2014). While there have been state's authority over regulated private utilities. several important federal policy supports for At the local level, some cities have made direct clean energy, such as the Investment Tax Credit use of their authority by enacting stringent and
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