Energy Efficiency in the Clean Power PlanCenter for Climate and Energy Solutions, August 27, 2014
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.