States have the necessary tools for the implementation of the US Environmental Protection Agency's (EPA) Clean Power Plan, according to Analysis Group's electric industry and economic experts' new report.
The report, EPA's Clean Power Plan: States' Tools for Reducing Costs & Increasing Benefits to Consumers, is based on the state's analysis that already have experience in regulating carbon pollution.
Analysis Group senior advisor Susan Tierney said, "Several states have already put a price on carbon dioxide pollution, and their economies are doing fine. The bottom line: the economy can handle - and actually benefit from - these rules.
"Those states have shown they already have the tools available to cut CO2 emissions while generating macroeconomic benefits and protecting consumers from dramatic hikes in their energy bills."
The EPA's proposed Clean Power Plan aims to reduce carbon emissions from existing fossil-fuelled power plants by using EPA's existing authority under the Clean Air Act.
Expected to be finalised next year, the draft rules will enable a variety of market-based and other approaches for states to choose from to cut greenhouse gas emissions from power plants.
The Analysis Group team, led by Tierney and vice-presidents Paul Hibbard and Andrea Okie, has analysed the carbon control rules that are already being implemented in several states to gain new insights they might hold for the success of the national rule.
"Costs from well-designed CO2-pollution-control programs will be modest in the near term and likely offset by longer-term benefits for all and common protections for low-income customers," Hibbard said.
"Experience shows that states that work together on market-based compliance initiatives - like RGGI in the north-east - can provide net economic benefits in terms of jobs and economic output."