What is a 50-state carbon plan?

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We need to make transformational changes to how we produce and use energy.

Transformational change will require tackling at least three foundational problems: 

1. Inequities in the U.S. Tax Code favoring fossil fuel investment
2. The power of existing players in energy markets not competitive or price-driven enough to properly reward innovation without policy intervention
3. Antiquated infrastructure built around 20th century energy markets that acts as a barrier to entry for clean energy solutions

Finally, because of the inherent uncertainty and delay associated with enacting new policy, any effort to address climate change must also leverage existing authority and law in the immediate term.

Any comprehensive approach to address climate change must have the following 4 cornerstones:

Energy Tax Reform

• Tax reform must remove inequities and properly reward carbon innovation
• For example, the Clean Energy for America Act addresses inequities in the tax code and consolidates 44 energy incentives into three technology-neutral provisions to promote energy independence and a low-carbon economy
• Other types of innovation tax credits can serve similar purposes, but will not facilitate transformational changes if temporary or laid over permanent incentives for fossil fuels

Performance Standards (Where Necessary)

• The fossil fuel industry has massive leverage in the energy marketplace, which undercuts the forces that would exist in a free market to innovate (invest in the future)
• In many cases, standards must be enacted to require modified performance
• Ideally, the standards are performance-based and technology-neutral to allow obligated parties to choose from multiple options and protect against system failure
• Proven policy models include a Clean Energy Standard (CES) and a Low Carbon Fuel Standard (LCFS)
• Performance standards can lie over the top of tax policy, which helps drive the "front-end" technology development needed for success

Infrastructure

• Clean electricity and low carbon fuels face barriers to entry and slow commercial deployment due to dated infrastructure (refueling and distribution network built around a fossil fuel economy)
• Lack of market readiness is used (and exaggerated) by the fossil fuels industry and their surrogates to water down policy and slow down change
• The Biden American Jobs Plan is a step in the right direction, but should be broadened in scope to better reflect a 50-state carbon plan

Leverage Existing Law 

• We must steepen carbon and carbon-equivalent reductions in the immediate term to meet the goals set forth by the Biden Administration (50% reductions by 2030)
• Existing law/authority must be optimized to reduce carbon-equivalent emissions and motivate large energy providers to embrace change
• In 2007, the U.S. Supreme Court ruled that the EPA has the authority and responsibility to curb heat trapping pollutants under the Clean Air Act (CAA)
• Two priorities should be reinitiating the Safer Affordable Fuel-Efficient (SAFE) rule to require mileage-based carbon reductions and optimizing the federal CAA Renewable Fuel Standard (RFS) to further de-carbonize liquid transportation fuels