| dc.description.abstract |
Over the past decade, state electricity policy has evolved to encourage end-use efficiency
as part of utilities’ efforts to serve their customers’ needs. Programs implemented
in response to these policies have grown rapidly across the United States and are
expected to save approximately 20 billion kWh per year over the coming decade. These
energy savings translate to roughly 15,000 tons of avoided NOx emissions, 45,000 tons
of avoided SO2, and 16 million tons of avoided CO2 each year. At the same time, many
states are still struggling to meet existing ambient air quality standards under the
Clean Air Act, and states and utilities both are planning for a raft of new regulations
that are expected to add another $100 billion to air compliance costs. Despite the
clear environmental benefit of existing end-use efficiency programs, very few states
have incorporated them into air quality compliance plans. This paper explores the
barriers that have led to this under-utilization of end-use efficiency as a Clean
Air Act compliance tool, explains EPA’s efforts to provide pathways towards compliance
credit, and identifies opportunities for states to capitalize on the overlap between
EPA’s requirements and the pre-existing state energy regulatory framework.
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