The Center for Climate and Energy Solutions seeks to inform the design and implementation of federal policies that will significantly reduce greenhouse gas emissions. Drawing from its extensive peer-reviewed published works, in-house policy analyses, and tracking of current legislative proposals, the Center provides research, analysis, and recommendations to policymakers in Congress and the Executive Branch. Read More

The Clean Power Plan's Clean Energy Incentive Program

The Clean Power Plan's Clean Energy Incentive Program

November 2015

Download the Fact Sheet (PDF)

Under its final Clean Power Plan (CPP), the U.S. Environmental Protection Agency (EPA) proposed to establish the Clean Energy Incentive Program (CEIP) to encourage early action in meeting CPP objectives. The CEIP is a voluntary program for states to incentivize renewable and energy efficient projects by giving them assets that will be tradeable in Clean Power Plan markets. EPA outlined an initial structure for the CEIP, though it is soliciting stakeholder feedback before finalizing elements of the CEIP in the coming year.

Overview of the Clean Power Plan's Clean Energy Incentive Program

Map: Energy Efficiency under the Proposed Carbon Pollution Standards


NOTE: This map is based on the proposed Clean Power Plan, which factors in each state's energy efficiency potential in determining state-specific emission rates. The final rule does not include energy efficiency as a building block, though states are allowed to use energy efficiency to meet their clean power goals.

In its proposed Carbon Pollution Standards for Existing Power Plants (also called the Clean Power Plan), the Environmental Protection Agency (EPA) proposes a unique 2030 target emissions rate for each state. This target is based on EPA projections of how each state could leverage a variety of carbon-cutting measures, including customer energy efficiency.

Through energy efficiency programs, states can drive down their total consumption, including consumption of electricity generated by fossil fuels. This in turn reduces greenhouse gas emissions, bringing states closer to their emission rate target. EPA projects that each state is capable of eventually reducing electricity demand by 1.5 percent each year, in line with the rate leading states have achieved. States are projected to meet this figure in varying years, taking into account how advanced each state was in 2012. This 1.5 percent projection is incremental, meaning EPA expects an additional 1.5 percent savings each year, for a much larger cumulative savings by 2030. Projections for states that currently reduce demand by less than 1.5 percent per year are designed in a way that allow a ramp-up period before reaching this level, but EPA has determined that all states have the capacity to meet this projection by 2025 at the latest. Note that under the proposal, states are not obligated to meet EPA's efficiency projections in demonstrating compliance; provided the ultimate target emission rate is met, states could use any combination of measures they see fit.

The map above shows each state's 2012 incremental efficiency savings as a percentage of the 1.5 percent projection. States colored with a darker shade of blue are closer to meeting this projection. Two states, Arizona and Maine, reported savings above 1.5 percent in 2012.

Zoom in and click on a state to see:

  • What incremental percentage of its electricity demand was reduced in 2012 through efficiency programs
  • How its current incremental savings rate compares to EPA's 1.5 percent annual projection
  • Whether the state has an Energy Efficiency Resource Standard in place, including:
    • A Mandatory Energy Efficiency Resource Standard, through which electric utilities must meet certain demand reduction targets (21 states)
    • A Voluntary Energy Efficiency Resource Standard, through which electric utilities are encouraged to meet certain demand reduction targets (4 states)
    • A Renewable Portfolio Standard that includes efficiency as qualifying generation (2 states)
    • An Alternative Energy Portfolio Standard that includes efficiency as qualifying generation (1 state)
    • A Renewable Portfolio Goal that includes efficiency as qualifying generation (4 states)
    • No Energy Efficiency law (17 states)

More information: C2ES Carbon Pollution Standards Resource Page


D.C. and Vermont are not included because they are not covered by the proposed Clean Power Plan

Source: EPA Clean Power Plan Technical Support Document: GHG Abatement Measures, Table 5-4: 2012 Reported Electricity Savings by State

The Clean Power Plan and Market Options for Compliance

The Clean Power Plan and
Market Options for Compliance

September 2015

Download the Fact Sheet (PDF)

Over the next year, states will be working with stakeholders to submit plans to implement the new federal Clean Power Plan and submit comments on the U.S. Environmental Protection Agency’s (EPA) proposed federal implementation plan and model rules. In its final Clean Power Plan, EPA has shown strong support for market-based approaches to reduce emissions and has granted states significant flexibility to implement market options. This document provides an overview of the Clean Power Plan and highlights aspects of the rule that warrant close attention from a market readiness perspective.


There's growing business momentum for climate action

Can you feel the momentum?

With negotiators meeting in Bonn this week and only six weeks to go until Paris, the business community is not only stepping up to the plate, but is swinging for the fences on its support climate action (Yes, it’s playoff season, so baseball is also on my mind).

This week’s announcement that 69 companies have joined the White House’s American Business Act on Climate Pledge brings the total to 81. Many of these companies pledging to reduce their emissions, take other actions to tackle climate change and support a strong international agreement include a number of members of our own Business Environmental Leadership Council: Alcoa, Bank of America, GE, General Motors, HP, IBM, Intel and PG&E. Together the 81 companies represent a combined $3 trillion in revenue and 9 million employees.

And last week, 14 companies with a combined revenue of $1.1 trillion and 1.5 million employees signed a statement organized by C2ES in support of a Paris climate agreement, that began “Paris presents a critical opportunity to strengthen efforts globally addressing the causes and consequences of climate change, and to demonstrate action by businesses and other non-state actors. ”

But these companies aren’t just talking about climate change; they’re doing something about it. They’re making commitments to reduce their own emissions, and some are even committing to use 100% renewable energy through the RE100 campaign.  They are also working both internally and with communities and cities to increase climate resilience.

Now it’s time to take this enthusiasm and put it to work. We know there is growing support for a strong agreement in Paris, and hopefully that’s what we’ll get in December.  But that’s just the first step—we’ll need to ensure that countries live up to their commitments, and back here in the United States, we’ll be working with businesses, states, and cities to build partnerships that harness the power of the markets to reduce emissions, develop innovative financing for clean energy and strengthen our resilience to climate impacts.

We have some real momentum going now. Let’s make the most of it.

New commitments to reduce HFCs show leadership

The fastest growing family of greenhouse gases – extremely potent hydrofluorocarbons (HFCs) -- aren’t going to be growing as fast in the future.

Today’s White House announcement of voluntary industry commitments to reduce hydrofluorocarbons (HFCs), along with new regulations put in place over the past year, have created game-changing shifts toward more environmentally friendly alternatives.

Developed as substitutes for ozone-depleting chlorofluorocarbons (CFCs) in the late 1980s, HFCs have become widely used worldwide in refrigerators, air conditioners, foam products, and aerosols. While they don’t contribute to ozone depletion, HFCs can trap 1,000 times or more heat in the atmosphere compared to carbon dioxide. This means they have a high global warming potential (GWP).

The amount of these compounds produced around the world has been growing at a rate of more than 10 percent per year. Unless controlled, emissions of HFCs could nearly triple in the U.S. by 2030. Strong international action to reduce HFCs could reduce temperature increases by 0.5 degrees Celsius by the end of the century, a critical contribution to global efforts to limit climate change.

The 16 voluntary industry commitments that make up today’s announcement highlight the innovation and leadership U.S. industry is showing in meeting the challenges of addressing climate change. These actions build on 22 commitments made by industry at a White House event just a year ago.

Progress in developing alternatives has been dramatic and is likely to accelerate even more over the next few years. For example:

  • Coca Cola has installed 1.5 million HFC-free cooler units in its global network.
  • Dow Chemical is shifting several of its foam lines to low-GWP alternatives.
  • Mission Pharmacal introduced the first zinc oxide aerosol product using a new low-GWP alternative.
  • Goodman Global Inc. will soon be introducing the first package terminal air-conditioning unit that relies on a low-GWP coolant.
  • Both Chemours (formerly DuPont) and Honeywell have commissioned a number of new plants to ensure adequate quantities of alternatives with lower global warming potential are available to companies worldwide.

As a critical complement to these voluntary industry actions, the Environmental Protection Agency (EPA) has implemented a series of new rules over the past year under its Significant New Alternatives Program (SNAP). These rules both expanded the range of acceptable low-GWP alternatives and limited the use of high-GWP HFCs where more environmentally friendly alternatives are available.

Today’s announcement also includes a new proposed rule that would extend refrigerant managing practices (e.g., recycling) now required for ozone-depleting substances to HFCs.

Together, these voluntary and regulatory actions demonstrate both the importance of acting and the feasibility of shifting to alternatives. They also help the United States make a strong case to the international community as nations gather the first week in November to discuss phasing down HFCs globally.

Clean Power Plan Timeline

Clean Power Plan Timeline

September 2015

Download the Timeline (PDF)

The Clean Power Plan provides guidelines for the development, submittal, and implementation of state plans. States can submit their plans or request a two-year extension by September 6, 2016. States must submit nal complete plans by September 6, 2018.

While the compliance period for the rule starts in 2022, states can opt to participate in the Clean Energy Incentive Program (CEIP). CEIP seeks to reward early investments in renewable energy and energy efciency measures that generate carbon-free electricity or reduce end-use energy demand during 2020 and/or 2021.

The performance rates are phased in over the 2022–2029 interim period, which leads to a “step down” reduction path. States may elect to set their own goals for the three interim periods as long as they meet their interim and nal goals. States must also demonstrate they have met their interim goal, on average, over the eight-year interim period.

Starting in July 2032 and every two years afterwards, states are required to demonstrate how they met the nal goal.


Bob Perciasepe's statement on the U.S.-China joint statement on climate change

Statement of Bob Perciasepe
President, Center for Climate and Energy Solutions

September 25, 2015

On today's U.S.-China joint statement on climate change:

The United States and China today advanced the global climate effort on two fronts – by committing to strengthen their national efforts to curb emissions, and by breaking ground on key elements of a new global accord.

In setting a start date for its national emissions trading system, China sends a powerful signal that market-based strategies will play a critical role in the transition to a low-carbon future. In the U.S., states have the opportunity to employ similar cost-effective approaches to cut emissions from power plants under the new Clean Power Plan.

Beyond their respective national efforts, the two leaders helped pave the way for a meaningful agreement in Paris by offering a shared vision for moving beyond the historic developed-developing country divide.

These new understandings can help deliver an agreement that ensures accountability and works to build ambition over time. And by committing $3 billion to help other developing countries, China is assuming shared responsibility for mobilizing critical climate finance.

Many issues remain and the United States and China cannot achieve a global accord alone. But the growing alignment of the world’s two largest economies and emitters bodes well for a successful outcome in Paris.


Contact: Laura Rehrmann, rehrmannl@c2es.org or 703-516-0621

About C2ES: The Center for Climate and Energy Solutions (C2ES) is an independent, nonprofit, nonpartisan organization promoting strong policy and action to address our climate and energy challenges. Learn more at www.c2es.org.

How states can best promote clean power

The federal Clean Power Plan gives each state the flexibility to use its own ideas on how best to reduce greenhouse gases from the power sector. One proven, cost-effective approach is to use market forces to drive innovation and efficiency.

It worked before to curb acid rain. It’s working now in California and the nine states in the Regional Greenhouse Gas Initiative. And it can work again with the Clean Power Plan.

The options available to states go beyond creating or joining a cap-and-trade program or instituting a carbon tax. Pieces can be put in place, such as common definitions, measurement and verification processes, so that states or companies could be in a position to trade within their state or across borders. Modest programs that allow companies to trade carbon credits could be explored.

In an op-ed published in The Hill, Anthony Earley, CEO of California energy company PG&E, and C2ES President Bob Perciasepe urge states to give these options serious thought.


Read The Hill op-ed.

Carbon Pollution Standards

Carbon Pollution Standards

The U.S. Environmental Protection Agency (EPA) issued final rules in August 2015 to limit carbon pollution from existing and new power plants. Electric power generation accounts for 40 percent of U.S. carbon emissions, making it the largest source. 

Reducing power sector emissions is a key part of President Obama’s Climate Action Plan, which aims to reduce overall U.S. greenhouse gas emissions 17 percent below 2005 levels by 2020. In addition, the U.S. contribution to the upcoming international climate agreement in Paris sets an economy-wide target of reducing greenhouse gas emissions by 26-28 percent below 2005 levels by 2025.

Under the Clean Power Plan for existing power plants, each state has its own target (due to regional variation in generation mix and electricity consumption). Overall, the rule is designed to cut emissions 32 percent from 2005 emission levels by 2030.

EPA's “Carbon Pollution Standard for New Power Plants” finalizes a standard first proposed in March 2012 that was modified and proposed again in September 2013. States would apply the standards for new coal- and natural gas-fired plants (measured as tons of greenhouse gas emissions per megawatt-hour of elec­tricity produced) at each regulated plant.

Explore the issues and options involved in reducing carbon pollution from power plants through the following resources:

C2ES Resources

Additional Resources


Achieving the United States' Intended Nationally Determined Contribution

Achieving the United States' Intended Nationally Determined Contribution

August 2015

Download the fact sheet (PDF)

Nations are working toward a new global climate agreement later this year in Paris. To that end, countries have begun submitting their “intended nationally determined contributions” (INDCs) to the agreement.

In its INDC, the United States said it intends to achieve an economy-wide target of reducing its greenhouse gas emissions 26-28 percent below 2005 levels in 2025. Based on available estimates, measures already adopted or proposed will reduce emissions 17 to 20 percent below 2005 levels, meaning additional measures will be needed to achieve the 2025 target. 

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