A Clean Energy Action Plan For The United States
A Clean Energy Action Plan For The United States
A Clean Energy Action Plan For The United States
September 2016
W W W.AMERICANPROGRESS.ORG
Contents
1 Center for American Progress | A Clean Energy Action Plan for the United States
2 Center for American Progress | A Clean Energy Action Plan for the United States
FIGURE 1
The U.S. economy has grown while carbon emissions have fallen
U.S. greenhouse gas emissions and GDP from 2005 to 2014,
by million metric tons carbon dioxide equivalent and billion dollars
1.50
1.35
1.20
1.05
0.90
0.75
0.60
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Sources: U.S. Environmental Protection Agency, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2014 (2016), available at
https://www3.epa.gov/climatechange/ghgemissions/usinventoryreport.html; Bureau of Economic Analysis, Current Dollar and 'Real'
Gross Domestic Product (U.S. Department of Commerce, 2016), available at http://bea.gov/national/xls/gdplev.xls.
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The effects of a changing climate have also appeared with increasing frequency
and intensity, at times in devastating ways.8 In 2015 alone, 10 U.S. weather and climate events exceeded $1 billion in losses, and the trend of record-breaking global
high temperatures has continued.9 The body of science about the changing climate
and its potential effects on society and ecosystems continues to grow, and consensus among the scientific community regarding its human causes has solidified.10
Against this backdrop of increasing risks, public concern, and scientific clarity,
President Barack Obama has taken strong actions to tackle climate change: He
instituted a broad set of executive actions in his Climate Action Plan, invested
more than $90 billion in clean energy and related technologies through the
American Recovery and Reinvestment Act of 2009, introduced the first-ever
standards for carbon pollution from existing power plants, and worked with
other world leaders to forge the Paris Agreement.11 These actions have charted a
new path toward the Paris Agreement commitments to keep the global average
temperature from increasing more than 2 degrees Celsius, including President
Obamas emissions reduction targets of 17 percent by 2020 and 26 percent to 28
percent by 2025 below 2005 levels.12
FIGURE 2
4,000
2000
2010
2020
2030
2040
2050
Sources: U.S. Environmental Protection Agency, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2014 (2016), available at
https://www3.epa.gov/climatechange/ghgemissions/usinventoryreport.html; United Nations Framework Convention on Climate Change,
Cover Note INDC and Accompanying Information, available at http://www4.unfccc.int/submissions/INDC/Published Documents/
United States of America/1/U.S. Cover Note INDC and Accompanying Information.pdf (last accessed July 2016).
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At the end of President Obamas second term, some of the key initiatives in
the Climate Action Plan will require further action. The U.S. Environmental
Protection Agencys, or EPAs, Clean Power Plan will remain in the courts, and
the next president will have to act to bring the 2020 and 2025 international goals
to fruition.13 At the same time, if every nation meets their pledges under the Paris
Agreement, global warming will still exceed the agreed-upon goal of 2 degrees
Celsius.14 Therefore, the next president will need to continue efforts begun under
the Obama administration and take additional actions in order to reduce emissions further beyond 2025.15 (see Figure 2)
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further lower the costs of key technologies. They may also yield more adaptive
regional policy responses.20 Additionally, building a low-carbon economy requires
recognizing the energy system benefits, costs, and interdependencies beyond
the power sectorincluding transportation and industrial emissions, water and
land use, and the application of information and communication technologies.21
Factoring long-term thinking and decarbonization goals into decision-making
across sectors is paramount.
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TABLE 1
Generation infrastructure
Estimated lifespan
Coal
40
20
Nuclear
40
Wind
20
Rooftop solar PV
20
Utility-scale solar PV
30
Geothermal
25
End-use infrastructure
Residential buildings
70
65
25
21
14
22
Clothes dryers
20
Refrigerators
26
11.4
0.23
1.14
LEDs
5.71
Sources: Authors data on coal, natural gas combined cycle, nuclear, wind, rooftop solar PV, utility scale solar PV, geothermal from Lazard, Lazards Levelized Cost of Energy AnalysisVersion 9.0 (2015),
available at https://www.lazard.com/media/2390/lazards-levelized-cost-of-energy-analysis-90.pdf; data on residential buildings from U.S. Department of Energy, Windows and Building Envelope Research
and Development: Roadmap for Emerging Technologies (2014), available at http://energy.gov/sites/prod/files/2014/02/f8/BTO_windows_and_envelope_report_3.pdf; Data on large office buildings
from Energy Information Administration, Commercial Demand Module (U.S. Department of Energy, 2015), available at http://www.eia.gov/forecasts/aeo/assumptions/pdf/commercial.pdf; Data on
central forced-air furnaces, central air conditioners, gas water heaters, electric water heaters, clothes dryers, and refrigerators from Energy Information Administration,Residential Demand Module (U.S.
Department of Energy, 2015), available at http://www.eia.gov/forecasts/aeo/assumptions/pdf/residential.pdf; Data on passenger cars and light trucks from U.S. Department of Transportation, Table
1-26: Average Age of Automobiles and Trucks in Operation in the United States, available at http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/national_transportation_statistics/html/
table_01_26.html_mfd (last accessed August 2016); Data on lighting from U.S. Department of Energy, Lifetime of White LEDs (2009),available at https://betterbuildingssolutioncenter.energy.gov/sites/
default/files/attachments/lifetime_white_leds.pdf.
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Appliance standards
Energy efficiency standards issued in recent years will save Americans $540 billion
cumulatively through 2030, and the additional standards planned for 2016 will
put the United States on track to avoid 3 billion metric tons of carbon emissions
over the same time period.44 Many of these standardsincluding the largest-ever
standard, which covers commercial air conditioners and furnaces and will save
businesses $167 billion over its lifetimeresult from negotiated rulemaking
processes that bring together industry, labor and environmental groups, and DOE
experts to reach consensus on the best measures.45
A recent report by the ACEEE and the Appliance Standards Awareness Project, or
ASAP, projected that under the next president and within existing authority, the
DOE can continue this tremendous progress and potentially save the equivalent
of 762 terawatt-hours in 2035, or equal current annual energy consumption of all
the homes in Texas and Ohio combined.46 But the impressive potential cumulative carbon savings outlined in the report3.5 billion metric tons by 2050is not
inevitable, and achieving these savings will require the next president to champion
the appliance efficiency standards program against attempts to stall or weaken it.47
The ASAP/ACEEE report recommends that the DOE takes several actions to
update and improve product testing and analysis; add product categoriesincluding, potentially, televisions and computers; facilitate system savings; and address
products connected by information and communication technologies, such as
smart controls, thermostats, and other new products.48 The next president should
adopt these actions to expand the appliance efficiency standards program and work
with Congress to increase its funding and provide more tools for enforcement and
compliance efforts, including a greater ability to perform spot testing in the field and
increased civil penalties for noncompliance proportional to the products value.49
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Additionally, the next president and Congress should address at least two major gaps
in the program: the potential for increased energy efficiency from connected devices
and the growing proportion of energy use from a diverse range of products often
categorized as other uses in the residential and commercial sectors.50 This other
use category refers to productssuch as heating elements and exterior lightsthat
individually do not meet the statutory threshold required for the DOE to consider
new rulemakings. The U.S. Energy Information Administration, or EIA, projects
that its energy use will grow from 19 percent to 28 percent of the residential market
and from 35 percent to 48 percent of the commercial market from 2014 to 2050.51
The next president should work with Congress to lower the regulatory threshold
of energy use for new product determinations from the current threshold of 150
kilowatt-hours per household per year. This metric has limitations for commercial and industrial end uses, and adopting a more adaptable metric would enable
the DOE to set energy efficiency standards for a broader array of products that
individually are less energy-intensive but together constitute a rising source of
energy demand.52 Congress should also consider enabling performance-based
standards, which focus on the time an appliance is used or cover specific aspects
of its energy use profilesuch as network standby requirementsin order to
increase energy efficiency across a broader category of other use appliances and
equipment without regulating them individually.53
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Massachusetts adopted and has subsequently updated an opt-in stretch code for
municipalities that links buildings to performance standards rather than minimum standards, a more aggressive path for cities to encourage or mandate highly
efficient buildings.57
The next president should direct and fund the DOE to develop stretch codes
alongside the regular base code updating process and to provide states with
technical assistance when deciding whether and how to adopt and implement
stretch codes. The next president and Congress should also incentivize states
to update their existing building energy codes by increasing federal funding for
state building code offices and inspectors when states adopt the most recent
model codes or enact stretch codes. As of July 2016, the DOE reported that only
14 states had adopted or exceeded either of the two most recent model residential building energy codes. Similarly, only 24 states had adopted or exceeded
either of the two most recent model commercial codes.58 Providing incentives
for the adoption and enforcement of the most recent codes will achieve significant energy and carbon emissions savings.
Energy efficiency stands out as a challenging area that would benefit from better data quality and quantity. The evaluation, measurement, and verification, or
EM&V, process can be challenging for public officials, energy service companies,
or interested consumers due to the quantity, diversity, and quality of available data
and the lag time between interventions such as installing insulation and realizing
savings on an electric bill.61 As end-use technologiesfrom phones to thermostats to vehiclesbecome more connected, the data they generate and consume
is rapidly reshaping how consumers, utilities, and third parties access and control
equipment, make or save energy and money, and prevent or respond to cybersecurity threats.62 The United States 5.6 million commercial buildings and 120 million
households are a significant resource for increasing energy efficiency, managing
the electricity system, and growing renewable energy resources, but the interoperability of these buildings depends on setting shared and safe standards that allow
innovators to tap into their energy resource potential without exposing businesses
and households to cyber risks.63 In this growing but still nascent sector, it will
become increasingly important to develop open interoperability standards that
balance energy services with cybersecurity safeguards while concurrently establishing uniform methods of calculating the energy savings they achieve.
By keeping energy efficiency and the reduction of cybersecurity vulnerabilities
at the forefront, the next president can address energy data, cybersecurity, and
connected device efficiency in an integrated way. First, he or she should direct
the Department of Energy, the Department of Homeland Security, and other
federal agencies to work with utilities, state regulators, and other stakeholders to set distribution system standards to protect critical infrastructure and
encourage the growing market of connected devices. Second, championing the
Green Button programan initiative sponsored by electric utilities that enables
customers to access their energy data securelywill make more high-quality
energy data available to utility customers. The next presidential administration should work with utilities and third-party energy efficiency and renewable
energy service providers to expand the program.64 Lastly, the next president
should request a road map for near-term open standards, platforms, and EM&V
methods to optimize energy efficiency and cybersecurity protections that builds
on the DOEs existing research on building interoperability in coordination with
the DOEs Uniform Methods Project and the White Houses Commission on
Enhancing National Cybersecurity.65
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FIGURE 3
Wind
40
30
20
10
0
2008
2009
2010
2011
2012
2013
2014
2015
Sources: Data on wind energy from U.S. Department of Energy, 2015 Wind Technologies Market Report (2015), available at
http://energy.gov/eere/wind/downloads/2015-wind-technologies-market-report; Data on solar energy from U.S. Department of
Energy, Utility-Scale Solar 2015: An Empirical Analysis of Project Cost, Performance, and Pricing Trends in the United States (2016), available
at https://emp.lbl.gov/sites/all/files/lbnl-1006037_report.pdf.
After several years of uncertainty regarding extensions, a schedule for the wind
production tax credit and solar investment tax credits was enacted in December
2015.67 It established steps down from initial tax credit amounts to either lower
amounts or complete phase-out through 2019 for wind and starting in 2019
for solar.68 Beyond enhancing market certainty, the extensions are projected to
increase renewable energy deploymentin both high and low natural gas price
scenariosand bridge what might otherwise be a slowdown between now and
2022, when the Clean Power Plan comes into force.69 (see text box)
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Regulatory avenues to drive deployment of clean energy and energy efficiency technologies
The Clean Air Act offers federal policymakers an important tool to
cut carbon emissions from the electric power and industrial sectors
through deployment of renewable energy and energy efficiency
technologies.
Section 111 of the Clean Air Act authorizes the EPA to set standards
of performance for any stationary source category that causes, or
contributes significantly to, air pollution which may reasonably be
anticipated to endanger public health or welfare.70
Under section 111, the EPA has set carbon pollution limits for new
and existing power plants. In August 2015, the EPA finalized the
Clean Power Plan, which, when fully implemented, will reduce
carbon pollution from the power sector by 32 percent.71 The EIA
predicts that the Clean Power Plan will accelerate clean energy
deployment in the United States.72 On February 9, 2016, the U.S.
Supreme Court stayed implementation of the Clean Power Plan
pending further judicial review.73 Assuming the plan is implemented, the EPA could use its authority under section 111 to review
With some overarching federal policy drivers in place, the renewable energy
market has great potential, but several actions are needed to promote the installation and integration of these new, low-carbon resources into the electricity system.
From accounting for their costs and benefits in reasonable electric rates to balancing new power sources with storage, the integration of renewable energy will
reduce emissions and provide additional economic and system benefits.
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wholesale sales and interstate transmission, and each state public utility commission, or PUC, regulates retail sales of electricity and transmission within its borders.77 This diverse regulatory and policy landscape has fostered an equally diverse
set of electric utilitiesfrom investor-owned utilities to federal power marketing
administrations to rural cooperatives, among others.78
In this context, state PUCs regulate retail electric rates and approve electric utilities rate cases, or legal proceedings before PUCs in which utilities propose and
argue for changes to the price they charge customers for electricity. The electricity systems rapid and significant changes are forcing PUCs to adapt their roles
as new generation, distribution, and end-use technologies enter the market and
transform the customer demands and the ability of utilities to meet policy goals
and recuperate investments.79 In setting regulations and determining rate cases,
PUCs have an ever-growing set of costs and benefits to consider: traditional
accounting for utilities capital expenditures on power plants and transmission
and distribution infrastructure; the value of services provided by the grid and
distributed resources, such as energy storage; and how to capture and quantify the
societal and environmental benefits of renewable generation. These include, for
example, electricity generated on customer rooftops rather than at a centralized
power station.80 Valuing these costs and benefits accurately can inform electric
rate-setting and promote clean energy growth, or it can halt that growth entirely.81
For example, a utility may justify a rate increase proposal to build centralized fossil fuel generation by only comparing traditional costs such as construction and
operations without analyzing the additional benefits that distributed renewable
generation provides, such as avoided costs for pollution control equipment.82
Although the discussion of retail electricity rates and many other aspects of energy
policy occurs at the state level, the federal government can play an important role
by providing or facilitating technical assistance to state PUCs and other decisionmakers.83 Much of this technical assistance, often performed in partnership with
the DOEs National Laboratories, focuses on policy analysis and support through
national membership groups; direct education of officials, including PUC staff;
and funding of projects designed to advance state, local, or tribal energy policies.84
Given the DOEs expertise in analyzing the climate, health, and economic benefits of
clean energy, more emphasis should be placed on making its work directly available
to states. In recent years, technical experts at the DOE and National Laboratories
have been invited to provide expert analysis to inform PUCs decisions, and third
parties have often cited DOE-supported analysis in their own comments and testimony.85 Drawing on the DOEs and National Laboratories expertise and analytical
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capabilities would provide objective insight into the many issues that PUCs contemplate, including retail rate design. The next president should charge the DOE
with developing a team of technical expertsin partnership with relevant national
groups such as the National Association of Regulatory Utility Commissionersto
support states, particularly state PUCs and other officials, as they request technical
expertise to inform considerations of incorporating clean energy into their resource
mix, including energy efficiency and distributed energy resources.
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Transmission
Renewable generation resourcesparticularly high-quality onshore and offshore wind, hydroelectric, and solar resourcesare located in North American
regions at a distance from demand centers and thus require the construction
and interconnection of high voltage transmission lines. The 2015 Quadrennial
Energy Review projected increased transmission investments to address aging
infrastructure and system congestion and to connect these renewable resources
with demand centers.92 Projections by the National Renewable Energy Laboratory
indicate that the high penetrations of wind needed to increase low-carbon generation in the eastern United States would require transmission construction or result
in curtailment of wind projects.93 Permitting, siting, and financing transmission
projects have presented challenges to linking these resources.
The recent passage of the Fixing Americas Surface Transportation Act established a
unified dashboard through which federal agencies report performance schedules
varying by scope and project type but held to standardized deadlinesin order
to increase transparency, create common metrics, track environmental review and
stakeholder input, and expedite review processes.94 The new dashboard represents
President Obamas latest move to prioritize infrastructure development and remove
bureaucratic barriers where appropriate; another pending action includes the finalization of rules regarding a pre-application process aligning federal authorizations
across several agencies for electric transmission lines.95 Once finalized, these new
features will aid the development of transmission lines bringing renewable energy
from high-quality resource areas to demand centers. The long-term development
of transmission projectswhich command significant lead time due to siting and
regulatory processes, especially when multiple states are involvedwill require the
next president to increase funding for federal agency infrastructure review officers in
order to keep agencies on track under the new performance standards.
The next president and Congress should create incentives for transmission infrastructure projects by adding qualified transmission projects to the investment tax
credit scheme under section 48 of the Internal Revenue Code.96 The investment
tax credit was initially established by the Energy Policy Act of 2005 in order to
incentivize the production of solar technology.97 The investment tax credit gives
a direct tax rebate of a certain percentage of an investment for qualifying assets.
These assets are optimal for projects that require a large upfront investment, and
many companies prefer them because they can be sold for cash value to institutional investors.98 A transmission investment tax credit would aid investment
in infrastructure, as it has done for solar, which is projected to double in capacity from 2016 to 2020 due to the recent solar investment tax credit extension.99
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Setting project qualifications above a voltage level and/or limiting the investment
tax credit to direct current lines would further promote transmission projects
related to renewable energy development.
The next president should charge relevant federal agencies with work
with its counterparts in Canada and Mexico to:
Implement the commitments of the 2016 North American Leaders
Summit, sustain the trilateral climate and energy engagement, and
promote new, stronger commitments in the future
Harness the benefits of collaborative RD&D through the Mission
Innovation initiative and other enterprises
Complete the North America renewable integration study recommended by the 2015 Quadrennial Energy Review and use it to
identify, incentivize, and remove barriers to clean energy project
development, including cross-border transmission projects, over
the next 10 years106
Continue collaborative efforts on energy data collection, scrubbing,
and coordination with the goal of informing continent-wide energy
modeling in future clean energy studies107
Expand EV integration initiatives to appropriate Canadian and Mexican regions and trade routes
Identify opportunities to strengthen deployment of energy efficiency and renewable energy technologies through coordination
and trade with Canada and Mexico, particularly when considering
setting new goals or designing new policies and programs, while
promoting similar partnerships at the regional level among states,
provinces, cities, and tribes108
Ensure that regulatory and infrastructure investment decisions in
North America reflect the need to reduce carbon emissions
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Energy storage
Another enabling infrastructure for renewable generation is energy storage.
One of the technical obstacles to greater deployment and integration of renewable technologies is their variable and intermittent generation output. Energy
storage technologies balance these characteristics by reducing the curtailment
of excess generation, meeting peak demand, and assisting power quality regulation.109 Across the variety of storage technologiesincluding batteries, pumped
hydroelectric storage, flywheels, and other systemscosts are an ongoing
barrier to adoption.110 With continued investment, storage costs are expected to
decline. For example, the capital cost of lithium-ion batteries is expected to fall
50 percent from 2015 to 2020.111
Many states and utilities are already expanding their use of energy storage. Since
2014, California, Oregon, and Massachusetts have announced storage requirements for their electricity systems. Californias storage mandate calls for 1.3
gigawatts of capacity by 2022; in response, one utilitySouthern California
Edisonpurchased more than 250 megawatts of capacity in 2014, five times its
quota.112 While promising, these mandates can only be fulfilled if the regulatory
environment for storage is clarified and storage-friendly policies are implemented.
While recent attention has focused on advanced technology for energy storage
such as batteries and flywheels, the DOE estimates that there is major potential to
develop pumped-storage hydropower, or PSH, resources. A PSH project provides
for water to be pumped to elevation when electricity is plentiful and then to be
subsequently run through a turbine to generate electricity when needed. While
the DOE has modeled as much as 36 gigawatts of additional PSH capacity by
2050 under a combination of technology and finance scenarios,113 every PSH
project would have to be carefully evaluated for environmental consequences,
costs, and other effects to determine its appropriateness.
The next president should recommend that Congress expand the investment tax
credit to explicitly include energy storage technologies. Because storage technologies do not produce energy, a storage investment tax credit would likely be based
on the amount of energy that each unit could store. Similar to the transmission
investment tax credit proposal, a storage investment tax credit would attract
investors to install storage technologies, driving further integration of renewable
generation into the electric grid while also enhancing its reliability.
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Additionally, the next president should call for the DOE to complete a study on
the carbon benefits of storage. The benefits that energy storage provides to renewable generation have been documented, but a comprehensive assessment of the
emissions reduction potential for broader uses of storage is needed.114 Storages
ancillary servicessuch as regulating the physical properties of electricitysupport electric power transmission and distribution systems, and under FERC
Order 890, energy storage and other demand resources must be considered as
alternatives to new transmission.115 When serving as a demand response or outage
recovery tool, energy storage often serves as a substitute for fast-response fossil
fuel power plants, providing those services at lower costs.116 Energy storage provides value by avoiding the costs of new infrastructure investments and performing services less expensively than fossil fuel generation, but the broader effect of
energy storage on carbon emissions is less understood.
Energy storage currently occupies a gray area in the wholesale and retail electricity markets, potentially classified as either a transmission or generation asset.
The multiple services that storage provides make the case for its classification as
an asset in more than one category and affect which entities regulate it and how
utilities incorporate investment costs into their electric rate structures. To date,
the FERC has decided to classify energy storage on a case-by-case basis, as seen
in its decision to side with the Midcontinent Independent System Operator in
classifying an Indiana battery facility as a generation asset in a 2016 interconnection dispute.117 In 2016, the FERC issued a formal data request regarding energy
storage and wholesale electric markets.118 The next president should recommend
to the FERC that it set clear and flexible standards for the classification of different storage technologies by size and services provided to clarify the regulatory
landscape and encourage the deployment of these technologies.
Electric vehicles
EVs are often considered a clean energy or carbon emissions solution due to
their potential role in reducing emissions from the transportation sector. As
a result, state and federal policymakers have implemented regulatory and tax
incentive programs to drive new EV deployment. Between 2011 and 2015,
cumulative U.S. sales reached more than 400,000 plug-in vehicles, manufactured by 13 different automakers. As of 2015, approximately 30,000 EV charging stations operate in the United States.119 When considered in the context of
the electric power sector, however, EVs play an additional role as a new source
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In July 2016, the Obama administration announced actions that the federal
government and private sector will take to increase access to EV charging and promote EV adoption, including by designating a network of EV charging stations as
part of zero-emission corridors, strategic locations for alternative fueling stations
and related infrastructure along highways or other roadways to improve mobility
for vehicles using such technologies.126 In fall 2016, the White House will convene
state and local governments, utilities, automakers, charging companies, and other
stakeholders to identify needs for a nationwide network for fast-charging stations,
which are high-power chargers that can charge an EV battery in 20 to 30 minutes. The next president should use this needs assessment to identify and implement policy changes, procurement actions, and financing mechanisms to further
develop zero-emission vehicle corridors and greater EV adoption. Additionally,
to broaden the effects of this endeavor, the next president should charge the DOE
and other relevant agencies with following this initial meeting with outreach to
government and industry stakeholders in Mexico and Canada to identify crossborder corridors for zero-emission vehicles and charging infrastructure.
Energy efficiency
Energy finance
Work with the federal energy finance director to identify and apply
for financing at different federal agencies appropriate for state, local, and tribal stakeholders
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Place climate and clean energy at the top of the executive branch agenda
President Obamas commitment to addressing climate change has prioritized
the issue throughout the executive branchsecuring it as a top agenda item for
relevant Cabinet officials, the presidents senior adviser, the White House Council
on Environmental Quality, the Domestic Policy Councils Energy and Climate
Change team, and several other White House offices. This has included elevating
it in each years budget and through public speaking and championing legislative action on climate and clean energy. Each White House office has devoted its
resourceswhether expertise, skills, budget, or relationships with relevant federal
agencies and members of Congressto this effort. As described in this report,
the increasing complexity of energy policymaking requires strong leadership and
coordination within the White House, across the executive branch, and in working with Congress. The next president should prioritize climate and clean energy
in the structure and staffing of his or her White House policy offices.
Established under the National Environmental Policy Act of 1969, the CEQ exists
as an advisory body to the president and as the coordinator of federal interagency environmental policy development and implementation of the act.129 As
a statutorily derived body, CEQs mission captures the intertwined character of
environmental, energy, climate, economic, and social policy deliberation.130 The
expertise, resources, and personnel needed to execute the next presidents climate
and energy agenda may continue to dwell in several White House offices, but this
agendas urgency and complexity call for improvements to this arrangement.
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With that in mind, the next president should combine the Domestic Policy
Councils Energy and Climate Change team and other climate, energy, and
environmental posts into the CEQ and charge it with an integrative policymaking
approach as the White House and interagency lead on climate, clean energy, and
environmental issues. The next president should name a senior adviser focusing
on climate and clean energy or nominate a high-profile individual as chair of the
CEQ, elevating that role to the Cabinet level.
The beginning of a new term is a moment for the president to clarify his or her
agenda to the public by reorganizing internal White House structures and processes
where possible and appropriate. Centralizing interagency coordination, decisionmaking, communications with outside stakeholders, and policy formulation on
climate, energy, and environmental issues within the CEQ will better strengthen the
White Houses ability to lead high-priority, cross-cutting issues and clearly communicate the next presidents agenda across agencies and to the American people.
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One way to prioritize this agenda includes Cabinet officials naming a full-time
chief sustainability officer for their agencies, similar to each agencys chief financial
officer or chief information officer. Agencies currently assign energy efficiency
and sustainability roles on top of the existing responsibilities of senior officials,
rather than dedicating an employee to the core functions performed by energy,
water, resilience, land use, and other environmental services.134 Additionally, the
next president should task the federal chief sustainability officer with establishing
a policy working group made up of each federal agencys chief sustainability officer
and general counsel, or other relevant staff attorneys, in order to standardize guidance for contracting, procurement, and appropriations language across relevant
energy efficiency and renewable energy regulations.
The U.S. Department of Defense and military services have forged a path for
renewable energy generation on federal lands, providing renewable energy to those
facilities and, at times, to their surrounding communities. For example, the U.S.
Navy worked with the Western Area Power Administration to sign a power purchase agreement with Sempra U.S. Gas & Power, securing electricity for 14 Navy
and Marine Corps installations in California from a 210 megawatt solar PV plant
that will also help meet Californias renewable portfolio standard goal.135 Civilian
federal agencies are currently limited to 10-year power purchase agreements and
to retaining ownership of generation equipment when procuring power through
performance contracting; both contract stipulations make it difficult to finance
renewable energy installations.136 The next Congress should pass legislation enabling
civilian federal agencies to sign, at a minimum, 20-year power purchase agreements
to continue the success illustrated by the Department of Defense. The next president
should also direct the Office of Management and Budget to issue guidance enabling
the option to purchase generation equipment during or after the term of a performance contract rather than requiring ownership outright.
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technologies considered too early for private sector investment; the DOE Loan
Programs Offices direct loan and loan guarantee authorities finance demonstration stage technologies; and its applied energy offices help states create markets
for deployment through ongoing technical assistance, grants, and research.137 (see
Figure 4) The most significant recent incentives to promote clean energy deployment endeavors came in the 2015 extension of the solar and wind tax credits.138
FIGURE 4
Stages:
Federal
investment
& policy
Private
investment
Illustrative
technologies
DEMONSTRATION
COMMERCIAL VIABILITY
ECONOMIC VIABILITY
Venture capital
Private equity
& debt financing
Technical assistance,
investment and
production tax credits
Investment banks
& stock owners
Sources: U.S. Department of Energy, Quadrennial Technology Review: An Assessment of Energy Technologies and Research Opportunities (2015), available at http://energy.gov/under-secretary-science-and-energy/quadrennial-technology-review; L.M. Murphy and P.L. Edwards, "Bridging the Valley of Death: Transitioning from Public to Private Sector Financing" (Golden, CO: National Renewable Energy Laboratory, 2003), available
at http://www.nrel.gov/docs/gen/fy03/34036.pdf; Jesse Jenkins and Sara Mansur, "Bridging the Clean Energy Valleys of Death" (Oakland, CA: Breakthrough Institute, 2011), available at http://thebreakthrough.org/blog/Valleys_of_Death.pdf; Philip E. Auerswald and Lewis M. Branscomb, "Valleys of Death and Darwinian Seas: Financing the Invention to Innovation Transition in the United States," Journal of
Technology Transfer 28 (3) (2003): 227239, available at http://link.springer.com/article/10.1023/A:1024980525678.
From an economy-wide perspective, these policies and investments have encouraged the private sector to follow suit, and in 2015, new U.S. investment in renewable energy reached $44 billion, with global investment totaling a record $285.9
billion.139 Given the current fiscal and political realities in the United States, and in
many other countries as well, the federal government is an unlikely source for this
level of direct investment. Instead, lowering barriers to private sector financing
and unlocking federal government financial incentives at key points in technology
development and deployment has become critical.
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30 Center for American Progress | A Clean Energy Action Plan for the United States
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FIGURE 5
Residential solar PV
Nonresidential solar PV, less
than or equal to 500 kilowatts
$12
$9
$6
Nonresidential solar PV,
greater than 500 kilowatts
$3
Utility-scale solar PV
$0
1998
2000
2002
2004
2006
2008
2010
2012
2014
20152020:
DOE Goal
Note: Price data availability reflects the appearance of significant capacity in the U.S. market of each technology. For example, the first
solar PV project greater than 5 megawatts was intsalled in 2007. Cumulative solar electricity generation capacity was approximately 1.2
gigawatts in 2007, including only 35 megawatts of utility-scale solar PV. (See Figure 4)
Source: Authors' data on residential and nonresidential solar PV from Galen L. Barbose and Nam R. Darghouth, Tracking the Sun IX: The
Installed Price of Residential and Non-residential Photovalic Systems in the United States (U.S. Department of Energy, 2016), available at
https://emp.lbl.gov/publications/tracking-sun-ix-installed-price; data on utility-scale solar PV from Mark Bolinger and Joachim Seel,
Utility-Scale Solar 2015: An Empirical Analysis of Project Cost, Performance, and Pricing Trends in the United States (U.S. Department of Energy,
2016), available at https://emp.lbl.gov/publications/utility-scale-solar-2015-empirical; U.S. Department of Energy, On the Path to Sunshot:
Executive Summary (2016), available at http://energy.gov/sites/prod/files/2016/05/f31/OTPSS%20-%20Executive%20Summary-508.pdf.
33 Center for American Progress | A Clean Energy Action Plan for the United States
Information Administration recently indicated that U.S. transportation emissions have overtaken power sector emissions.150 This recent shift in emissions
share indicates the totality of addressing climate change: Reducing emissions in
only one sector of the economy will not achieve the goal. Taking into account the
differences in technologies, policy approaches, and RD&D agendas used in the
industrial and transportation sectors, the next president should increase funding
through Mission Innovation to match appropriately the need for innovation and
long-term solutions in these sectors.
34 Center for American Progress | A Clean Energy Action Plan for the United States
Conclusion: Summary
of recommendations
Strengthening energy efficiency as a foundation for action
Appliance efficiency standards
Adopt ASAP/ACEEE recommendations to strengthen the DOEs appliance
efficiency standards program and increase its funding
Address the energy efficiency of other use technologies by lowering the energy
threshold requirements for the DOE to designate new product categories and
make that threshold applicable to residential, commercial, and industrial sectors
Enable the DOE to set performance-based standards for new product categories to allow more flexibility for the DOE and manufacturers to achieve greater
energy savings
Building codes
Direct the DOE to develop stretch building energy codes and provide technical
assistance to states in order to increase their implementation
Fund state building code programs when states significantly enhance their
building energy efficiency efforts
Energy data, connected devices, and cybersecurity risks
Direct relevant federal agencies to develop and set cybersecurity standards for
the distribution system that also encourage the growth and energy efficiency of
the distributed energy device market
Champion the Green Button program to provide higher quantity and quality
energy data to utility customers and third-party service providers
Request a road map for interoperability and cybersecurity standards and EM&V
methods to optimize building energy efficiency
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for American Progress, where he works on U.S. climate and energy policy, including renewable energy and energy efficiency policies.
Myriam Alexander-Kearns is the Research Associate for the Energy Policy team at
the Center for American Progress and contributed to the electric vehicle section
of this report.
Jerusalem Demsas is a former intern with the Energy Policy team at the Center
Acknowledgments
Several staff at the Center for American Progress contributed to this report,
including Greg Dotson, Alison Cassady, Pete Ogden, Gwynne Taraska, and Erin
Auel. Additionally, this report draws on the expert analysis of numerous colleagues at the U.S. Department of Energy, the National Laboratories, and several
nonprofit, academic, and private sector leaders.
38 Center for American Progress | A Clean Energy Action Plan for the United States
Endnotes
1 Public opinion regarding climate change has shifted
in recent years toward greater recognition of climate
science, anthropogenic causes, and a need for climate
action. Anthony Leiserowitz and others, Climate
Change in the American Mind: March 2016 (New Haven, CT: Yale Program on Climate Change Communication, 2016), available at http://climatecommunication.
yale.edu/publications/climate-change-americanmind-march-2016. Additionally, business leaders are
increasingly discussing climate change and making
commitments to increase energy efficiency and renewable energy use. For more information, see RE100, a
coalition of businesses committing to 100 percent
renewable power. RE100, About RE100, available at
http://there100.org/re100 (last accessed September
2016); Jeff McMahon, How Business Leapfrogged
Government on Climate Action, Forbes, December
8, 2015, available at http://www.forbes.com/sites/
jeffmcmahon/2015/12/08/how-business-leapfroggedgovernment-on-climate-action; Kevin Moss, Business
and Climate Action: The Times They Are A-Changin,
World Resources Institute, December 2, 2015, available
at http://www.wri.org/blog/2015/12/business-andclimate-action-times-they-are-changin.
2 James H. Williams, Benjamin Haley, and Ryan Jones,
Policy Implications of Deep Decarbonization in
the United States (San Francisco; Paris: Energy and
Environmental Economics, Inc.; Deep Decarbonization
Pathways Project, 2015), available at http://deepdecarbonization.org/wp-content/uploads/2015/11/
US_Deep_Decarbonization_Policy_Report.pdf.
3 U.S. Environmental Protection Agency, Inventory of U.S.
Greenhouse Gas Emissions and Sinks: 19902014 (2016),
available at https://www3.epa.gov/climatechange/
Downloads/ghgemissions/US-GHG-Inventory2016-Main-Text.pdf; Williams, Haley, and Jones, Policy
Implications of Deep Decarbonization in the United
States.
4 U.S. Environmental Protection Agency, Inventory of U.S.
Greenhouse Gas Emissions and Sinks; U.S. Department of
Commerce Bureau of Economic Analysis, Current Dollar and Real Gross Domestic Product (2016), available
at http://bea.gov/national/xls/gdplev.xls.
5 U.S. Department of Energy, Revolution . . . Now: The
Future Arrives for Five Clean Energy Technologies 2015
Update (2015), available at http://energy.gov/sites/
prod/files/2015/11/f27/Revolution-Now-11132015.pdf.
6 These figures exclude large hydropower projects.
Frankfurt School-United Nations Environment
Programme Collaborating Centre for Climate and Sustainable Energy Finance, Global Trends in Renewable
Energy Investment 2016 (2016), available at http://
fs-unep-centre.org/sites/default/files/publications/globaltrendsinrenewableenergyinvestment2016lowres_0.
pdf.
7 Leiserowitz and others, Climate Change in the American Mind.
8 For information on climate change impacts to the United States, see U.S. Global Change Research Program,
U.S. National Climate Assessment (2014), available at
http://nca2014.globalchange.gov/report. For information on global effects, see Intergovernmental Panel on
Climate Change, Climate Change 2014: Impacts, Adaptation, and Vulnerability (2014), available at https://
www.ipcc.ch/report/ar5/wg2.
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84 Relevant national membership groups include the National Association of Regulatory Utility Commissioners,
the National Association of State Energy Officers, and
others. See, U.S. Department of Energy, State, Local
and Tribal Technical Assistance Gateway.
69 Mai and others, Impacts of Federal Tax Credit Extensions on Renewable Deployment and Power Sector
Emissions.
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43 Center for American Progress | A Clean Energy Action Plan for the United States
128 Chris Tremper, Federal Progress Toward Energy/Sustainability Goals (Washington: U.S. Department of Energy, 2016), available at http://energy.gov/sites/prod/
files/2016/09/f33/fy15_facility_sustainability_goals.pdf.
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140 Nanette Byrnes, At a Time of Plenty, Some Technologies Are Shut Out, MIT Technology Review, November
23, 2015, available at https://www.technologyreview.
com/s/543351/at-a-time-of-plenty-some-technologiesare-shut-out/?set=543346; Benjamin Gaddy, Varun
Sivaram, and Francis OSullivan, Venture Capital and
Cleantech: The Wrong Model for Clean Energy Innovation. Working Paper 2016-06 (MIT Energy Initiative,
2016), available at http://energy.mit.edu/wp-content/
uploads/2016/07/MITEI-WP-2016-06.pdf.
145 National Renewable Energy Laboratory, NREL Technique Leads to Improved Perovskite Solar Cells, Press
release, August 1, 2016, available at http://www.nrel.
gov/news/press/2016/36714; U.S. Department of Energy Office of Energy Efficiency and Renewable Energy,
EERE Success StoryRevolutionary Refrigeration Motor Slashes Supermarket Energy Usage, June 7, 2016,
available at http://energy.gov/eere/success-stories/
articles/eere-success-story-revolutionary-refrigerationmotor-slashes.
147 Michael Woodhouse and others, On the Path to SunShot: The Role of Advancements in Solar Photovoltaic
Efficiency, Reliability, and Costs (Boulder, CO: National
Renewable Energy Laboratory, 2016), available at
http://www.nrel.gov/docs/fy16osti/65872.pdf.
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