EPA's Clean Power Plan

Energy Efficiency can meet an estimated 25% of Colorado’s carbon emission reductions the EPA expects to see by 2030. Colorado is nearly 75% the way there now—without energy efficiency, the state would only be about 50% according to a recent analysis by Western Resource Advocates.


What Is EPA’s Clean Power Plan?

The Clean Power Plan is a proposed rule that establishes state-by-state CO2 emissions reductions for existing fossil fuel-fired power plants. By 2030, carbon dioxide (CO2)  emissions are expected to be 30 percent less than 2005 levels.Each state is expected to design a program that meets the emissions reduction goals using energy efficiency, renewable energy, natural gas, or nuclear energy.

The EPA removed energy efficiency as a Clean Power Plan building block in the final ruling to reduce the risk of legal challenge to the plan. However, energy efficiency is still expected to act as a key strategic component in state compliance plans. The EPA is forming a Clean Energy Incentive Program (CEIP) in order to attract early investments in energy efficiency in low-income communities. Under the optional program, energy efficiency programs in low income communities will get double credit for energy savings that occur in 2020 and 2021. EEBC will work with the Colorado Energy Office and the Colorado Department of Public Health and Environment to ensure energy efficiency is well represented in state compliance plans.

Who Does The Clean Power Plan Affect?

  • State administrators of air quality programs must submit plans to EPA if the state contains one or more fossil-fuel power plant.
  • Investor owned utilities, rural co-ops, and municipalities are all potentially subject to the state's plan.

Why Is The Clean Power Plan Important To EEBC Members?

  • Even though Energy Efficiency is not included as a building block in the Clean Power Plan it is still an important component and will be considered in state compliance strategies.
  • Among EEBC's recommendations for a state compliance plan is expanding existing energy efficiency programs and policies, which would maintain existing utility demand side management (DSM) programs in the state.
  • EEBC is soliciting input from its members during policy committee meetings to find out what types of programs and policies would work best for our industry in a state compliance plan for the Clean Power Plan.


Timeline

August 3, 2015
EPA issued the final ruling of the Clean Power Plan. 

September 6, 2016
States must submit a strategy to implement the finalized standards,
ask for an extension, or take on a federal implementation plan

September 6, 2018 
Multi-state plans and states that file extensions must submit plan to 
implement new standards

2020 
The compliance period for sensible carbon pollution standards will begin

2030
Carbon dioxide levels will be 30 percent less than 2005 levels


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