The CEIP program description states that projects can earn credits or allowances up to a nationwide total of 600 million tons. Entities that earn credits or allowances in 20 can sell them to fossil power plants for use in 2022 or later to help meet their emissions limits.
Projects are eligible if they are initiated after the state submits its final state plan. The CEIP allows states to award credits or allowances to qualifying renewable electricity generation, and to qualifying energy efficiency savings in low-income communities, for emissions reductions achieved in 20, before the compliance period begins. In addition, the final Clean Power Plan creates a new voluntary Clean Energy Incentive Program (CEIP) that will generate additional early compliance credits. Projects begun after 2012 can earn credits or allowances for emissions reductions they achieve in 2022 and beyond those reductions can count toward compliance with plants’ enforceable limits. Incentives Will Encourage Investments in Renewables and Energy EfficiencyĮarly investments in renewables and energy efficiency will help power plants meet their enforceable limits. In that case, it is the EPA’s responsibility to regulate the power plants in that state directly. If a state chooses not to adopt a satisfactory plan, however, our national air pollution law provides a federal guarantee for our health and well-being. The Clean Air Act does not require any state to adopt a plan to curb its power plant pollution. The Clean Power Plan describes multiple ways that states can structure their plans and emissions limits. Each state then has an opportunity to adopt its own plan―including enforceable emissions limits―for its coal and gas plants. Under this authority, the Clean Power Plan establishes a federal–state process for controlling power plant pollution.įirst, the Clean Power Plan establishes national carbon dioxide emissions performance rates for existing coal- and gas-fired power plants. The EPA adopted the Clean Power Plan under the Clean Air Act, which, according to a 2011 Supreme Court ruling, provides the legal authority to control carbon pollution from America’s fleet of fossil-fueled power plants. How the Clean Power Plan Works: Federal and State Responsibilities The shift to energy efficiency and cleaner power will also save the average American family $85 on its electricity bills in 2030. This is like canceling out the annual carbon emissions from 70 percent of the nation’s cars or avoiding the pollution from the yearly electricity use of every home in America.Įconomists believe that in 2030, the Clean Power Plan could save the country $20 billion in climate-related costs and deliver $14 billion to $34 billion in health benefits. In 2030 alone, there would be 870 million fewer tons of carbon pollution. Of course, power companies would have to act sooner than 2022 to prepare and to respond to additional clean energy incentives in the plan.Īccording to EPA projections, by 2030, the Clean Power Plan would cut the electric sector’s carbon pollution by 32 percent nationally, relative to 2005 levels.
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This historic step to rein in power plant pollution would speed America’s transition away from fossil fuels, protect our health, prevent future generations from experiencing the worst effects of climate change, and position the United States as a global climate leader.Įnforceable carbon pollution limits would kick in starting in 2022 and ramp up into full effect by 2030. The plan sets flexible and achievable standards that give each state the opportunity to design its own most cost-effective path toward cleaner energy sources. Environmental Protection Agency issued the final Clean Power Plan under the Clean Air Act, the nation’s fundamental air pollution law. Limiting carbon pollution from the nation’s power plants is the single-biggest step we can take to fight climate chaos. We are already seeing the impacts of climate change in extreme weather, droughts, wildfires, floods, and other disruptions around the world. power plants, the largest source of the pollution in the country that’s driving dangerous climate change.
The Clean Power Plan, announced by President Obama in August 2015, set the first-ever limits on carbon pollution from U.S.
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