Clean Power Plan

MOST RECENT UPDATE:

The Supreme Court of the United States issued a stay on the Clean Power Plan on February 9, 2016. However, the stay does not prevent the EPA from moving forward with certain aspects of the Clean Power Plan. This includes crafting guidelines for the Clean Energy Incentive Program (CEIP) and the EPA released the proposed CEIP on June 16,2016. The CEIP is an optional component of the Clean Power Plan that allows states to utilize matching allowances or ERCs obtained through the EPA by completing early actions under the Clean Power Plan, including energy efficiency projects that benefit low-income communities and constituencies. SWEEP will be commenting on some aspects of the proposal. Comments are due September 2, 2016.

 

HISTORY:

On January 21, 2016 SWEEP submitted on multiple aspects of the Clean Power Plan, including the proposed Federal Plan and Model Trading Rules as well as the draft EM&V Guidance. The Federal Plan and Model Trading Rules comments focus on supporting energy efficiency in a variety of ways, including allowing energy efficiency as a compliance option under the Federal Plan, ensuring that the Model Trading Rules work well as applied to energy efficiency measures, and relying on EM&V protocols to ensure that savings are properly accounted for.  The draft EM&V Guidance comments focus on supporting a wide range of energy efficiency efforts, including utility and non-utility programs as well as CHP/WHP and structuring the Clean Power Plan EM&V requirements so that they are consistent with current industry best practices.

 

On August 3, 2015, the U.S. EPA released the Clean Power Plan Final Rule using its authority under the Clean Air Act. The Rule establishes requirements for reducing the carbon dioxide emissions by existing power plants throughout the nation. Energy efficiency improvements can and should be part of the strategy that states and utilities employ to meet the requirement of the Clean Power Plan.

  • SWEEP has prepared a summary of the key provisions related to energy efficiency in the Clean Power Plan. In the coming months, SWEEP will develop and share other materials to assist states in the Southwest to incorporate energy efficiency programs and measures into their implementation plans.
  • SWEEP also provided detailed comments to the U.S. EPA in December, 2014 on the draft Clean Power Plan Rule.  

 

On November 5, 2015, SWEEP convened a workshop to discuss how energy efficiency can be utilized as a strategy to help Arizona meet the requirements of the EPA’s Clean Power Plan (CPP). Key environmental officials, major electric utilities, senior utility commission staff and energy efficiency experts attended the workshop. Attendees discussed how energy efficiency is treated within the CPP and how different types of energy efficiency initiatives could be used under scenarios of either rate-based or mass-based compliance.

 

On December 15, 2015, SWEEP submitted comments on the Clean Energy Incentive Program (CEIP) in EPA Docket Number EPA-HQ-OAR-2015-0734. Specifically, SWEEP offered input on the following questions: 1) How should EPA define key terms and eligibility requirements under the CEIP; 2) What should EPA consider when designing the mechanics of the CEIP; and 3) What should EPA consider regarding the timing and distribution of allowances under the CEIP.