EIRP/OnLocation Modeling of Legislative Proposals Shows Power of Staged Innovation, Regulation

EIRP/OnLocation Modeling of Legislative Proposals Shows Power of Staged Innovation, Regulation

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:

1. 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;
2. 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);
3. The power-sector portions of the bipartisan Infrastructure Investments and Jobs Act of 2021 (IIJA).

The findings include:

1. Innovation policies alone can achieve significant CO₂ mitigation, but long-term goals are unlikely to be met after policy incentives expire.
2. Cost-effective emissions reductions require both innovation policies and regulations.
3. 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.
4. The I+R policy incentivizes a more diverse portfolio of carbon-free generation and reduces emissions far more cost-effectively than the CFA.
5. The Infrastructure Investment and Jobs Act (IIJA) will reduce emissions slightly, but falls far short of meeting CO₂mitigation goals.

To read the modeling report, click the button below:

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