Analysis of the Bingaman clean energy standard proposal

摘要

A clean energy standard (CES) is a flexible approach to encourag-ing a cleaner technology mix for electricity production. The mostrecent federal CES proposal from former Senator Bingaman wouldtransform the way electricity is produced and result in substantialreductions in CO2emissions with small national average electric-ity price effects through 2025. After 2025, electricity prices wouldincrease substantially. The alternative compliance payment (ACP)for clean energy credits will be binding, so actual deployment ofclean energy will fall short of the intended targets, and cumula-tive emissions reductions by 2035 will be 12 percent smaller thanthey would be without an ACP. The small utility exemption fromthe CES requirements equates to roughly $29 billion in avoidedelectricity expenditures by the customers of exempted utilities in2035 alone. Excluding power generated by existing nuclear andhydroelectric facilities from CES compliance responsibility raiseselectricity prices in competitive regions to the benefit of owners ofexisting nuclear and hydroelectric capacity