New Analyses on Clean Power Plan Examine State Compliance Options

Additional tools have been added to the resources intended to help states and regulators navigate compliance with the U.S. Environmental Protection Agency’s (EPA) proposed Clean Power Plan, for which the rule is projected to be finalized in August. As proposed last summer, the plan regulates carbon dioxide emissions from existing power plants under the Clean Air Act, and gives states flexibility in how they can meet interim state-level emissions rate goals (2020–2030) and a final 2030 emissions rate limit. The American Council for an Energy-Efficient Economy, this week, released a plan detailing how energy efficiency financing can help states meet Clean Power Plan goals. And the National Association of Clean Air Agencies (NACAA) released a “menu of options” for states to weigh emissions reductions strategies.

Developed by former air and energy regulators at the Regulatory Assistance Project (RAP), the NACAA report considers the pros and cons of the 26 options it examines—including cap-and-trade systems, carbon dioxide taxes, electricity storage, smart grid applications and device-to-device communications—but does not rank them (subscription).

“We understand that each state has different needs and different interest and different politics and different experiences,” said Ken Colburn, a senior associate with RAP.

Another analysis by Duke University’s Nicholas Institute for Environmental Policy Solutions finds that with the right policy choices, compliance with the Clean Power Plan can be cost-effective for states. It outlines tradeoffs of three policy options: using state-specific, rate-based emissions goals, as laid out in the proposed plan versus converting that rate into a mass-based standard; identifying how trading emissions credits within state borders or with other states affect the cost of compliance with the rule; and determining whether to include under the rule new natural gas combined cycle units that produce electricity and capture their waste heat —> Read More