Policy Innovation
Clean Power Plan
Clean Energy Policy
Summary:
The clean Power Plan was announced on Aug 3, 2015. The bill is the result of years of negotiations, and aims to set realistic and achievable standards for clean energy in the United States. The CPP is the first piece of legislation in the U.S. that sets carbon dioxide emission standards for power plants. The CPP sets individual statewide goals that are determined by the number of power plants in each state. The CPP is a historic first step in the transition towards clean energy and sustainability, and sets precedent for national measures that protect the environment.
Goals:
The CPP describes the best system of emissions reduction (BSER) for greenhouse gases. The BSER for carbon dioxide contains three different components. The first is to increase the efficiency (or heat rate) of coal fired power plants. The next part is for the U.S. to rely on forms of electricity generation that emit less carbon dioxide than coal fired power plants, such as natural gas. The final element of the BSER described in the CPP is for the use of zero-emitting renewable energy sources, such as solar and wind.
The CPP gives each state flexibility in selecting methods to be in compliance with their carbon emission goals. The CPP allows for carbon emission trading between states and encourages cooperation among states to address carbon dioxide emissions. The CPP promotes states to find innovative solutions that lower carbon dioxide emissions.
Impacts on Kentucky:
The CPP outlines a goal of 1,286 pounds of CO2 per megawatt-hour for Kentucky by 2030. The goal levels are determined by the number of natural gas and coal power plants that are located within the state. According to the EPA, this is one of the least stringent state goals in the final Clean Power Plan.
According to the Mountain Association for Community Economic Development (MACED), the Clean Power Plan could be a catalyst for a new energy economy that is based on clean sources of energy. Chairperson Dana Brown for the group Kentuckians For The Commonwealth (KFTC) stated that the CPP can be of great benefit to Kentucky and that small increases in renewable energy and energy efficiency can create tens of thousands of new jobs. The Economic Policy Institute estimated that the CPP could help increase the total number of jobs in the U.S. by 360,000 through 2020.
Energy Project Assesment Districts (EPAD)
Summary
EPAD is nationally known by the acronym PACE, which stands for Property Assessed Clean Energy. EPAD makes it easier for commercial property owners in Kentucky to pay for energy efficiency and water conservation projects. Commercial property owners can finance the cost of the project for up to 20 years by just paying an assessment on their property tax bill. The property tax assessment gets passed down from owner to owner until the project is paid for. This reduces the financial risk of implementing energy efficiency and water conservation projects. There is no risk for the city either because they are not responsible for the remaining costs of a project if the company or property owner goes out of business.
Proof of Concept
EPAD adds no cost to the tax payers of Kentucky, but provides great services to the people and communities. The city of Covington completed the first project in Kentucky using EPAD. They revitalized the Ivy Knoll Senior Retirement Community. Heating and cooling units were updated, a rooftop solar array was added, and the elevators were modernized. The facility was a great success that improved the lives of many elderly individuals and greatly reduced their energy expenditure.
EPAD helps revitalize communities and attracts new businesses and people to the area stimulating economic growth. The City of Covington should be used as a model for other cities throughout the state, which will make Kentucky a more vibrant, healthy, and prosperous place to live.