Supporting State Plan Compatibility and Interstate Compliance with the Clean Power Plan

This working paper argues that facilitating interstate reduction strategies provides many types of benefits to states and regulated entities, including lowering compliance costs; reducing concerns about competition among jurisdictions; responding to changing fuel prices, weather, and other uncertainties; improving administrative efficiency; and enhancing alignment with regional electricity markets. Designing plans to be compatible will allow states to “opt in” to interstate compliance in the future without committing to it in the state plan.