Securing Greenhouse Gas Reductions through Private-Sector Delivered Industrial Energy Efficiency under EPA’s Clean Power Plan

IIP and NEMA submitted a technical paper to the EPA on the role of industrial energy efficiency as a compliance option under the proposed carbon emission guidelines for existing electric generating units under the Clean Air Act. The technical paper explores how IEE can produce large blocks of low-cost energy and carbon savings. While states are expected to pursue energy efficiency and associated carbon reductions for 111(d) compliance through their traditional ratepayer energy efficiency programs, the paper outlines how states and/or affected utilities could also consider offering industrial companies a means to privately deliver and receive credit for their energy efficiency resources in parallel to or outside of ratepayer programs, particularly in situations where ratepayer programs are not likely to be able to tap into the large opportunities for carbon reduction available in industry. This could also be attractive to industrials, as currently, many industrial efficiency programs do not address the broader, and larger, industrial energy efficiency opportunities available through continuous improvements in processes and site management.