Federal

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
 

Bob Perciasepe statement on US-Canada climate cooperation

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

March 10, 2016

With their joint announcement today, President Obama and Prime Minister Trudeau have set the stage for closer cooperation than ever before between the United States and Canada in meeting our shared climate and energy challenges. Given the inextricable links between our economies and our energy systems, it’s in everyone’s interest that our respective efforts are more closely aligned. 

We’re especially encouraged by the emphasis placed by the two leaders on the use of market-based approaches to reduce greenhouse gas emissions as cost-effectively as possible. California and Quebec have already formally linked their emissions trading systems, and the recent Paris Agreement can facilitate broader use of market-based policies globally. As the United States and Canada work to strengthen their domestic policies and implement the Paris Agreement, they should explore opportunities to realize the environmental and economic benefits of a more fully developed regional trading system.

In other areas, including the urgent need to reduce short-lived climate forcers such as methane and hydrofluorocarbons, the two leaders have set ambitious goals. In pursuing their common agenda, it is vital the two governments continue work in close partnership with the private sector to ensure that policies aimed at achieving those goals are practical and cost-effective.

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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 the challenges of energy and climate change. Learn more at www.c2es.org.

We need states to show clean energy leadership

Smart policy often comes from the states, and many states have shown and are expected to continue to show leadership in addressing climate change and promoting clean energy.

The Clean Power Plan stimulated discussions across the country, sometimes for the first time, among state energy and environment department officials, regulators, and energy companies about ways to reduce emissions. And we see momentum to keep those and other conversations going.

Consider some of the many ways states are leading:

Key Insights: Business, State and City Collaboration on Interstate Trading under the Clean Power Plan

Key Insights: Business, State and City Collaboration on Interstate Trading under the Clean Power Plan
 

February 2016

Download the Fact Sheet (PDF)

C2ES facilitated a second private Solutions Forum workshop around the Clean Power Plan in February 2016. More than 50 business leaders, state and city officials, other experts, and representatives of the U.S. Environmental Protection Agency (EPA) participated. The discussion built on previous Solutions Forum events and took a deeper dive into implementation issues states are facing as they consider trading-ready compliance plans. This paper summarizes key insights and remaining questions from the workshop.

The week following our workshop the U.S. Supreme Court ordered a stay of the Clean Power Plan. In our assessment, most stakeholders continue to value answering these questions while awaiting the legal outcome.

More information about the C2ES Solutions Forum

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States, cities, companies support clean power

A number of states, cities, and power companies plan to press forward with clean energy efforts despite this week’s Supreme Court stay of the Clean Power Plan.

That’s because the future of carbon regulation is not “if” but “how and when,” and it is too big a question not to continue a thoughtful conversation among thoughtful people.

States to explore options

Officials in states including California, Colorado, Minnesota, Virginia, and Washington have said the court’s temporary stay won’t stop them from continuing to explore implementation options, which include leveraging the power of market forces to reduce emissions. Even states suing the Environmental Protection Agency (EPA) have been having these conversations, and most will continue to.

For instance, Montana Department of Environmental Quality energy bureau chief Laura Andersen told ClimateWire, "The market forces at play in the region are quite significant and will not go away just because the Clean Power Plan has a stay on it.”

Al Minier, chairman of the Wyoming Public Service Commission, said the stay could give regulators more time to develop strategies that are best for the state.

Clean power progress will continue despite Supreme Court ruling

The Supreme Court’s stay of the Clean Power Plan may slow, but certainly does not stop, progress toward a cleaner power system in the United States.

There’s no telling how the legal challenges to the Clean Power Plan, which were always expected, will ultimately play out. But here are a few important points to keep in mind:

The Environmental Protection Agency’s authority to regulate greenhouse gases is settled. The Supreme Court ruled in 2007 that EPA has authority under the Clean Air Act to regulate greenhouse gases. It affirmed that ruling 8-0 in 2011 when it rejected nuisance suits against greenhouse gas emitters, ruling that “the Clean Air Act and the EPA actions it authorizes displace any federal common law right to seek abatement of carbon-dioxide emissions from fossil-fuel fired power plants.”  

What’s at issue is whether the particular way EPA has chosen to exercise that authority in regulating carbon emissions from power plants is appropriate.  Because there was little precedent to work from, EPA had to chart the direction, and did so with a very careful eye to the legal defensibility of its approach. 

The Clean Power Plan has already generated tremendous learning about the practicalities of decarbonizing our power sector. In crafting the rule, EPA engaged extensively with states, utilities and others (and was widely praised for doing so). The adoption of the rule last summer has triggered similar state-level conversations across the country. Even states that are suing to overturn the rule have been actively considering how to implement it.

As a result, we all know a lot more today about the challenges of cutting carbon and the smartest strategies for doing it cost-effectively. That knowledge will be of tremendous value going forward, with or without the Clean Power Plan.

Bob Perciasepe's statement on SCOTUS stay of the Clean Power Plan

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

 
February 9, 2016

Contact: Marty Niland, nilandm@c2es.org, (cell) 410-963-8974
 
The Supreme Court has made clear in previous rulings that EPA has the authority to regulate greenhouse gases.  Whether or not the Court ultimately upholds this particular rule, the need to cut carbon emissions will remain, and states need to figure out the most cost-effective ways to do that.  It’s in everyone’s interest that states keep at it, because whether it’s the Clean Power Plan or some other policy, they’ll need smart strategies to get the job done.
 
The country has made substantial progress reducing emissions and ramping up clean energy technologies.  Much of that progress has come from business, state and city leadership and initiative. There’s no reason to halt progress and innovation as we wait for these legal challenges to work through the courts.  C2ES will continue working with businesses, states and cities on market-based approaches to curbing emissions while keeping our power supplies reliable and affordable.

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

 

Distribution of Allowances under the Clean Power Plan

Distribution of Allowances under the Clean Power Plan

February 2016

Download the Fact Sheet (PDF)

In August 2015, the U.S. Environmental Protection Agency (EPA) finalized the Clean Power Plan for existing power plants. Under the rule, states can implement a mass-based or rate-based compliance plan to reduce greenhouse gas emissions from the power sector. States choosing a mass-based approach must also decide how to allocate emission allowances. This fact sheet provides an overview of how allowances could be distributed under a mass-based approach and the policy objectives achieved by their distribution.

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Energy Efficiency under the Clean Power Plan

Energy Efficiency under the Clean Power Plan

February 2016

Download the Fact Sheet (PDF)

Energy efficiency programs are in wide use, whether administered by state governments, city governments, or utilities. Because energy efficiency is often a low-cost means for reducing power sector emissions, the U.S. Environmental Protection Agency (EPA) expects it will be broadly used to comply with the Clean Power Plan, which sets greenhouse gas standards for existing power plants. This fact sheet compares the treatment of energy efficiency under two types of Clean Power Plan compliance approaches: rate-based
or mass-based emission standards.

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Market Oversight Under the Clean Power Plan

Market Oversight under the Clean Power Plan

February 2016

Download the Fact Sheet (PDF)

Carbon markets, like other commodities markets, require provisions to ensure that the market functions effectively and is not manipulated by some participants. Regulators conduct oversight to ensure that buyers can procure carbon credits when needed at a price that reflects the cost of reducing emissions and buyers’ risk tolerance. By making sure that buyers only pay a fair and transparent price, regulators help protect consumers from overpaying for cleaner electricity. This fact sheet investigates the options and implications
of potential market oversight provisions that might be useful as states consider implementing the Clean Power Plan.

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Tracking Systems in the Clean Power Plan

Tracking Systems in the Clean Power Plan

February 2016

Download the Fact Sheet (PDF)

 

Tracking systems provide the foundation for a smoothly operating trading market. They are used by market participants to track the use, trading, banking, and retirement of tradable assets. In trading programs under the Clean Power Plan, tracking systems will be used to track emission reduction credits (ERCs) in rate-based programs and allowances in mass-based programs.

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