EPA’s recently finalized Clean Power Plan (CPP) contains a key policy initiative not discussed or even mentioned in the proposed rule: the Clean Energy Incentive Program (CEIP). Through the CEIP, EPA will award extra emission allowances and emission rate credits to states that “act early” to increase generation from wind and solar power and/or reduce electricity demand via energy-efficiency measures. By “early,” EPA means before the 2022-2030 CPP compliance period.
You might suppose EPA would explain the legal authority for a substantive policy change affecting potentially hundreds of regulated entities, but there appears to be no discussion of the CEIP’s statutory basis in either the final rule, the CEIP fact sheet, or EPA’s proposed “backstop” Federal Plan.
What accounts for this curious omission? Does EPA not explain the legal basis for the CEIP because it can’t?
In the climate policy debates of the late 1990s and early 2000s, “credit for early action” was an issue of recurring controversy. What most policymakers, interest groups, and activists eventually acknowledged is that current law does not authorize any federal agency to award regulatory credits for “early” or “voluntary” reductions of greenhouse gases. Ironically, some of today’s most aggressive CPP advocates helped forge the ‘consensus’ that federal agencies lack statutory authority to implement an early action credit program. [click to continue…]