“On June 2, 2014, the U.S. Environmental Protection Agency, under President Obama’s Climate Action Plan, proposed a commonsense plan to cut carbon pollution from power plants. The science shows that climate change is already posing risks to our health and our economy. The Clean Power Plan will maintain an affordable, reliable energy system, while cutting pollution and protecting our health and environment now and for future generations.” -US EPA
The Clean Energy Incentive Program, or CEIP, is a tool for state to incentivize early investments in renewable energy and energy efficiency in Pennsylvania’s low-income communities that count towards Clean Power Plan compliance.
As the least-cost energy resource, energy efficiency can be the backbone of Pennsylvania’s state plan to comply with the EPA’s Clean Power Plan. However, there are historic, economic, logistical, and informational barriers to implementing demand-side energy efficiency in low-income communities, especially in the multifamily affordable housing sector. A recent report conducted by the American Council for an Energy-Efficient Economy (ACEEE) reviewed the energy burden of 48 major U.S. metropolitan areas and found that low-income households devote up to three times as much income to energy costs as do other, higher-income households.
In order to address this disparity, the CEIP will offer participating states double credit for efficiency and solar projects in low-income communities that provide energy savings in 2020 and 2021. This program will bring the benefits of energy efficiency to the low-income community, while growing the efficiency industry, and cementing efficiency as a backbone for clean power plan compliance. At more than $100 million in additional efficiency funding, the CEP represents an important opportunity for the Commonwealth.
To capture this value, and bring more energy efficiency to low-income communities, KEEA is working with our member businesses, low-income and housing advocates, and other partners across the state to ensure that Pennsylvania participates in the CEIP.