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The Clean Power Plan’s Clean Energy Incentive Program

The Clean Power Plan’s Clean Energy Incentive Program

Full Title: The Clean Power Plan's Clean Energy Incentive Program
Author(s): Center for Climate and Energy Solutions (C2ES)
Publisher(s): Center for Climate and Energy Solutions (C2ES)
Publication Date: November 1, 2015
Full Text: Download Resource
Description (excerpt):

EPA will provide extra allowances or emission rate credits (ERCs) to a participating state depending on whether the state adopts a mass-based or rate-based CPP target. If it opts in, a state would distribute allowances or ERCs to eligible early action projects that reduce emissions in 2020 and/or 2021. States adopting mass-based targets borrow allowances that would have otherwise been provided during the 2022–2029 CPP compliance period. An early action project thus receives a combination of state-level credits and matching credits provided by EPA through the CEIP. Overall, EPA will provide extra credits up to the equivalent of 300 million short tons of carbon dioxide.

CEIP-eligible projects include new wind and solar projects and end-use energy efficiency programs targeted at low-income communities. Projects must begin construction or operations after September 8, 2018, or the date when the host state submits a final state plan to EPA for CPP compliance. If a state submits only an initial plan by the September 8, 2016 deadline, it must indicate its intent to participate in the CEIP in the initial plan, though this indication is not binding.

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