Itâs convoluted, but it still may be the best shot at a major climate law this decade.
This post and all the keyboarding Iâm doing here about this proposed clean energy program will become irrelevant if the so-called âprogressive wingâ of the dems and the two corporate shill dem senators insist on pursuing their ego trips and/or campaign contribution donors and refuse to put something together that will let us move forward with a climate package. Forget the republicans.....they are giggling away at this nightmare, but thatâs about all they can do because they do nothing else.
Excerpt from this story from Grist:
President Joe Biden ran on a platform that promised climate action on a scale never seen before in American politics. One of the supporting beams of that plan is something called a clean energy standard â a mandate for utilities to generate a certain amount of clean electricity by a set date. Bidenâs proposed standard targeted a carbon-free electricity sector â the second-most polluting slice of the emissions pie in the U.S. behind transportation â by 2035.
Congressional Democrats sought to put that clean energy standard into Bidenâs first major legislative priority â a $2 trillion infrastructure package aimed at improving the nationâs infrastructure and simultaneously reducing emissions. But a handful of centrist Republicans and Democrats succeeded in whittling down the package by about a trillion dollars and removing the standard from the bill, which has already passed the Senate and is poised for a vote in the House this week. Biden and progressives promised to get their clean energy standard done another way. Thatâs how something called the Clean Electricity Performance Program, a wonky and complicated climate policy that nobody had ever heard of before this month, made its way into Democratâs $3.5 trillion budget reconciliation bill.
The CEPP, as itâs called, could be Democratsâ last best chance to pass climate policy this decade. And if it passes, it will become the nationâs first-ever federal policy aimed at significantly reducing emissions from the power sector. A year ago, the CEPP didnât even exist as a concept. Its invention is an acrobatic feat and a calculated effort to get past arcane Senate rules.
Hereâs how the CEPP works as both a clean energy standard and a reconciliation-friendly piece of policy.
A clean energy standard is built on a foundational assumption: If utilities produce more clean power, theyâll become greener over time, and emissions will go down. But forcing utilities to get clean isnât a budgetary matter, itâs a policy change. The CEPP gets around that by using federal dollars â which, of course, pertain to the budget â to reward utilities for going green.
More specifically, any type of company that retails electricity that increases its share of clean energy by 4 percent each year can tap into a $150 billion grant program created by the CEPP. Clean energy is defined as power sources that emit no more than 0.1 metric tons of emissions per megawatt-hour, which include wind, solar, geothermal, nuclear, and hydropower.
So if youâre a company that sells power to customers and you manage to increase the amount of clean electricity you provide to customers by 4 percent in a year-long period, you would get $150 for every megawatt-hour of clean energy you sell over 1.5 percent of the previous yearâs target. And if you donât meet that 4 percent goal, you get penalized $40 for every megawatt-hour of clean electricity you failed to come up with. Plus, you have to make up the deficit the following year. This concept, applied to utilities across the U.S., would ultimately lead to emissions reductions of about 82 percent from 2005 levels by 2030, when the program would end. Â















