Pilar Thomas: EPA Clean Power Plan could boost tribal energy

Issued under the authority of the Clean Air Act, Sec. 111(d), the Final Rule establishes emission rate standards (rate-based standard) for coal-fired power plants and natural gas combined cycle power plants. In addition, the Rule establishes overall compliance goals for total emissions, at the state level, for all affected EGUs within the state (mass-based standard). The Final Rule retains the three “building blocks” for the best system for emissions reduction (BSER) to achieve these emission goals: 1) increasing the “heat rate” – efficiency – of coal-fired power plants; 2) increase the capacity/output of natural gas combined-cycle power plants; and 3) increase the amount of power generated from non-carbon emitting sources, such as wind, solar, hydropower or geothermal power. The compliance period starts in 2020, with interim goals established over the following 10 years, and the final emissions goals must be reached by 2030.

States will have until September 2016 to submit state implementation plans (SIPs), with the ability to request a 2 year extension to 2018. Tribes in, or near, states that have to achieve high reductions in their emissions rates, such as Arizona (32% reduction), Michigan (32% reduction), Minnesota (20% reduction), Montana (37% reduction), New Mexico (28% reduction), North Dakota (37% reduction), and Wisconsin (34% reduction), are presented with a prime opportunity to work with theses state and the renewable energy industry to determine how tribal clean energy resources – wind, solar, biomass, hydro – can be brought to bear on the helping those states meet their emission reduction requirements.

The Final Rule also requires states to conduct outreach to key stakeholders, including low income, vulnerable, and indigenous communities. The state must document these outreach efforts, and identify how the state’s implementation plan will affect or impact these communities. Tribes have a key opportunity to engage their state officials responsible for developing the implementation plans to determine how tribal lands can/should be included in the state’s plans, and thus positioning tribes to take advantage of promoting renewable energy projects on tribal lands and promoting energy efficiency efforts on tribal buildings and facilities.

Furthermore, the Final Rule includes a program called the “Clean Energy Incentive Program.” Designed to kick start the deployment of renewable energy and energy efficiency projects to meet the states’ emission goals, the CEIP provides early “emission reduction credits” for renewable energy projects deployed in 2018 – 2020. And, to promote benefits in low-income communities, the CEIP allocates double ERCs for energy efficiency projects deployed in low-income communities, which would include tribal communities.