Energy Efficiency Should Be Placed on a Level Playing Field in the Clean Energy Incentive Program - American Council for an Energy-Efficient Economy

Despite the fact that energy efficiency is generally the least-cost option for states looking to comply with the Clean Power Plan, it has yet to be fully considered as a strategy for the Clean Energy Incentive Program (CEIP). This could result in reduced investment in energy efficiency which would mean increased electric costs and less money in the hands of communities.  As we’ve shown, it costs significantly less to reduce emissions through energy efficiency than through other means.  These savings get passed down to customers, resulting in local job creation and economic development.  The Environmental Protection Agency’s latest proposal for the CEIP is an important opportunity to ensure that states can reward investments in energy efficiency while claiming credit for the pollution it avoids.  The CEIP early-action program incentivizes renewable energy and energy efficiency serving low-income communities, but as currently drafted, it puts efficiency at an unfair disadvantage.  Earlier Friday ACEEE submitted comments to the EPA that seek to put energy efficiency on a level playing field.

The CEIP is expected to spur early investment in clean energy and provides benefits to low-income communities.  In addition to rewarding early investments in energy efficiency and solar projects implemented in low-income communities, the CEIP offers an extra incentive to renewable energy.  While we support many elements of EPA’s recent proposal, we are requesting that EPA expand this pool of credits available to renewable energy to also include energy efficiency.

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