WASHINGTON, April 29, 2015 – The Bipartisan Policy Center (BPC) recently analyzed how the Environmental Protection Agency’s proposed Clean Power Plan may impact states, regions and the nation. BPC used economic modeling of the electricity sector to compare effects of various policy choices states can consider for their state plans.

The study examined:

·         Single state versus multi-state implementation

·         Rate-based versus mass-based compliance

·         Policy treatment of new natural gas plants


It also looked at how the availability of end-use energy efficiency and expectations for future natural gas prices could influence how the electricity sector responds to the Clean Power Plan.
The report found, among other things:

·         Clear benefits to multistate collaboration and linked trading approaches that allow access to lower cost emission reduction options and allow flexibility to adapt to changing circumstances

·         Significant cost impacts related to a state’s choice of energy efficiency policies

·         Benefits to including new sources in state implementation policies

·         Real impacts as a result of different rate-to-mass conversion methodologies.


The report shows that the impact of the plan could vary widely depending on the details of the final rule and decisions state policy makers make on compliance.
Because of this, BPC plans to release an updated modeling analysis after the Clean Power Plan is finalized this summer.

See the full report here.


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