BCSE Comments for EPA Public Hearing on Proposed Clean Power Plan July 30, 2014
Thank you forthe opportunityto participate in this public hearingon the Environmental Protection Agency's proposed Clean Power Plan for regulating carbon dioxide emissions from existing power plant sources. My name is Zoe Berkery and I am Manager of Federal Policy with the Business Council forSustainable Energy. The Business Council forSustainable Energy is a coalition ofcompanies and trade associations from the energy efficiency, renewable energy and

**~atural** gas sectors, and also includes independent electric power producers and investor-owned utilities. Founded in 1992,the Council advocates for policies atthe state, national and international levels that increase the use ofcommercially-available clean energytechnologies, products and services. The coalition's diverse business membership is united around the revitalization ofthe economy and the creation ofa secure and sustainable energyfuture for America. Priorto the release ofthe proposed Clean Power Plan, BCSE has actively engaged with the EPA on the development ofthe regulation, including providing written comments in December 2013. BCSE applaudsthe EPA's release ofthe proposed Clean Power Plan. It demonstratesthatthe United States is prepared totake meaningful steps to address climate change. Decisions made in corporate boardrooms and on Main Streets across the United States provide confidence that the business sector has never been better prepared than we are todayto step up to the challenge ofclimate change and meet emissions reduction targets. The mix ofenergy supply is changing rapidly, with low-carbon sources gaining market share. At the same time, energy consumption is down, despite overall economic growth. This means that implementingthe new limits on greenhouse gas emissions could be easierthan some have suggested. Accordingto the Sustainable Energy in America Factbookfrom Bloomberg New Energy Finance and BCSE, the use of lower and zero carbon energy sources has grown. Natural gas production and consumption hit an all-time high in 2013, and 94% ofall new electric power capacity built in the U.S. since 1997 has come in the form of natural gas plants or renewable energy facilities. Thus the use ofthese viable and affordable clean energytechnologies in the energy efficiency, renewable energy and natural gas sectors offercommercially-available optionsto reduce emissions.The Council would like tothankthe EPAfor using output-based metrics in establishingthe standard and for adopting asystem-wide approach to compliance, which will allow renewable energy, natural gas and energy efficiencyto play a role in helping states meettheir emission reduction targets. BCSE strongly supportsthe inclusion ofstate flexibility in the proposed rule. States have the freedom to crafttheir own compliance pathwayto meettheir state target, which is critical for cost-effective compliance. However, there are a number ofareas in the proposed rule thatthe BCSE seeks further clarification. For example:

e Howwill interstate energy imports and exports counttowards meeting astate's target? -In previous discussions with EPA officials, it has been indicated thatthe entity responsible for the investment should get the credit, but BCSE members seek clarity on this point in the final rule. Related tothis, BCSE members also seek clarity on howto account forthe sale or purchase of Renewable Energy Credits (RECs). Secondly, • Do states have a disincentiveto act beforethe start ofthe compliance period in 2020? Or between 2020-2029, the interim compliance period?- BCSE is concerned thatthe proposed Clean Power Plan as currentlyformulated might provide a disincentive for energy efficiency and renewable energy investments priorto 2020. Additionally,

**e~** BCSE is pleased to see demand side energy efficiency listed as acompliance mechanism, however, BCSE plans to comment on the need forfurther information on Evaluation, Measurement and Verification (EM&V) on howthese efforts will be adequately credited. Guidance for EM&V for renewables has been requested as well. Finally,

**e~** Another issue identified has to do with private sector or non-utility-ratepayer delivered efficiency- Energy efficiencyprograms, orthose run by utilities, are provided with methodological guidance underthe rule. However, energy efficiencyprojects, orthose done under Energy Savings Performance Contracts (ESPCs), or building projects a city does in support of its local goals, need additional guidance

.. BCSE views the proposed Clean Power Plan as a historic opportunityto build upon current trends in the US energy sectors and diversifythe nation's energy portfolio. This will lead to increased energy security,job creation and astronger economy. The economic opportunities for states and industry alike are significant and BCSE looks forward to workingwith you to refine the rule and move forward in this process.