In July 2022, Energy Innovation Reform Project released new quantitative modeling of federal climate policy options by OnLocation that identifies cost-effective, fuel-diverse pathways for decarbonization of the U.S. electric power sector.
The modeling examined the potential effects of three policies:
- A prominent, recently proposed clean energy standard (CES), the Clean Future Act of 2021 (CFA), sponsored by Rep. Frank Pallone, (D-NJ) chairman of the House Energy & Commerce Committee;
- An “Innovation + Regulation” (I+R) policy that features a CES combined with (and implemented after) a decade of innovation and infrastructure investments, as exemplified by the Clean Energy Future through Innovation Act (CEFTIA), introduced in 2021 by Reps. David McKinley (R-WV) and Kurt Schrader (D-OR);
- The power-sector portions of the bipartisan Infrastructure Investments and Jobs Act of 2021 (IIJA).
The findings include:
- Innovation policies alone can achieve significant CO2 mitigation, but long-term goals are unlikely to be met after policy incentives expire.
- Cost-effective emissions reductions require both innovation policies and regulations.
- The Clean Future Act would reduce fuel diversity and supply, and significantly increase electricity prices, while I+R would lower prices and preserve fuel diversity.
- The I+R policy incentivizes a more diverse portfolio of carbon-free generation and reduces emissions far more cost-effectively than the CFA.
- The Infrastructure Investment and Jobs Act (IIJA) will reduce emissions slightly, but falls far short of meeting CO2mitigation goals.
To read the modeling report, follow this link.