Clean Power Plan

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

Note:

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.

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Clean Power Plan Timeline

Clean Power Plan Timeline

February 2016

Download the Timeline (PDF)

On February 9, 2016, the U.S. Supreme Court issued an order staying the Clean Power Plan while litigation proceeds on the legal merits of the rule. No deadlines or other compliance obligations may be enforced while the stay is in effect.

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 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 new goal.


 

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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.

EPA's Clean Power Plan puts states in the driver's seat

The finalization today of EPA’s Clean Power Plan offers Americans a clear, realistic roadmap for addressing planet-warming emissions that threaten the environment and the U.S. economy.

Most importantly, it puts states in the driver’s seat to devise innovative strategies to reduce emissions efficiently and cost-effectively. Now it's time for states to work together with businesses and cities to craft the approaches that work best for them.

Climate change is a critical challenge, and the impacts will only grow more costly if we fail to act. Last year was the warmest on Earth since we started keeping records over a century ago. During the first half of this year, it got even hotter. Climate change impacts include more extreme heat, which can exacerbate drought and wildfires, more frequent and intense downpours that can lead to destructive floods, and rising sea levels that threaten coastal cities.

Many cities, states, and companies recognize climate risks. And many are taking steps to reduce greenhouse gas emissions.

New federal standards are already reducing heat-trapping emissions from the second-biggest source, transportation, by increasing the fuel economy of cars and trucks. The Clean Power Plan takes the next logical step by addressing the largest source: the electric power sector, responsible for nearly 40 percent of U.S. carbon dioxide emissions.

President Obama's Climate Action Plan: Two Years Later

President Obama's Climate Action Plan:
Two Years Later

June 2015

By Michael Tubman

Download the brief (PDF)

Two years after President Obama announced his Climate Action Plan, the administration has made marked progress toward achieving its goals. The plan, announced June 25, 2013, outlines 75 goals in three areas: cutting carbon pollution in the United States, preparing the United States for the impacts of climate change, and leading international efforts to address climate change. To date, there has been at least initial government action related to every item in the plan.

Michael Tubman
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Kudos to bipartisan ideas for the Clean Power Plan

Debate over the proposed Clean Power Plan has been, not surprisingly, contentious and, unfortunately, partisan. On one end, some Republicans are promoting a just-say-no approach, discouraging states from developing plans to cut carbon emissions from their power plants, as the proposed rule would require. On the other end, some Democrats are refusing to acknowledge the genuine challenges the proposal presents to states and the power sector.

With all the partisan rancor surrounding the plan, it was refreshing to see a bipartisan group of senators take a different approach. Senators Lamar Alexander (R-TN), Cory Booker (D-NJ), and Tom Carper (D-DE) came together last week to offer constructive comments on the proposal in a letter to Environmental Protection Agency (EPA) Administrator Gina McCarthy.

Smarter homes: comfortable, convenient and climate-friendly

States could go a long way toward meeting targets for reduced power plant emissions under the Clean Power Plan just by encouraging energy efficiency. One way to do that is to deploy more “intelligent efficiency” solutions at home. Interconnected systems and smart devices could not only help reduce energy use and climate-altering emissions, but also empower consumers to make money-saving choices.

More than 20 percent of U.S. greenhouse gases comes from the residential sector – where we use about 1.4 trillion kWh of electricity annually to power our heating and cooling systems, appliances and electronics. Although we pay for it all, a lot of that electricity is wasted. Tried-and-true solutions like weatherization and more efficient light bulbs will continue to be common sense solutions. But increasingly, homeowners, innovators, and policy makers are looking to leverage the average home’s 25 devices to reduce that waste.

Image courtesy U.S. Department of Energy

A homeowner installs a smart thermostat. Devices like this could be controlled though web platforms, along with water heaters, washing machines and LED bulbs with advanced controls.

Energy efficiency will play a key role in the Clean Power Plan

A new C2ES study outlines the significant role energy efficiency is expected to play in reducing carbon emissions from power plants under the proposed Clean Power Plan.

Energy efficiency can be an attractive way for states to meet the plan’s targets because, in addition to being relatively inexpensive to deploy on its own, energy efficiency reduces the need to build new, costly power plants in the future.

C2ES examined six economic modeling studies that project the likely impacts of the Clean Power Plan on the U.S. power mix and electricity prices. Despite starting with different assumptions, all of the studies project that energy efficiency will be the most used and least-cost option for states to implement the plan, and that overall electricity consumption will decline as a result.

The majority of the studies project either cost savings to power users under the Clean Power Plan or increases of less than $10 billion a year. That translates to less than $87 a year per household, or about 25 cents a day.

C2ES President Bob Perciasepe moderates a Solutions Forum panel with (l to r): Steve Harper, Global Director, Environment and Energy Policy, Intel Corporation; Alyssa Caddle, Principle Program Manager, Office of Sustainability, EMC; and Lars Kvale, Head of Business Development, APX Environmental Markets.

Our second Solutions Forum focused on how to spur more energy efficiency, especially through “intelligent efficiency” — a systems-based approach to energy management enabled through networked devices and sensors.

How can we use intelligent efficiency to reduce power sector emissions?

Nobody likes waste. And yet when we produce, distribute and use electricity, we’re wasting up to two-thirds of the energy.

Although we can’t eliminate all of these losses, we could reduce waste and increase reliability through “intelligent efficiency”— technology like networked devices and sensors, smart grids and thermostats, and energy management systems.

If we used energy more efficiently, we’d also reduce the harmful carbon dioxide emissions coming from our power plants — and reduce our electric bills.

That’s why energy efficiency is expected to be a critical, low-cost path for states looking to reduce power plant emissions under the proposed Clean Power Plan.

C2ES is pulling together top experts in sustainability, efficiency, and technology from cities, states and business to explore how we can deploy intelligent efficiency to help reach Clean Power Plan emissions targets. (RSVP for our event Monday, May 18, in Washington, D.C.)

Just as technology can instantly connect us with people across the globe or monitor our calories and whether we’re burning enough of them, we have technology that will allow us to network and monitor how we produce, deliver and consume electricity.

 

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