Clean Electricity Performance Program: A Primer

The Clean Electricity Performance Program (CEPP) uses a system of grants and payments to incentivize retail electricity suppliers to increase their share of clean electricity by 4 percentage points annually from 2023 to 2030. Suppliers meeting this goal receive Department of Energy grants, while those falling short must make payments. Clean electricity is defined as any source emitting no more than 0.10 metric tons of CO2-equivalent per MWh, encompassing renewables, nuclear, and carbon-captured fossil fuels. The program includes flexibility for suppliers to average performance over two or three years and provides exemptions from payments for suppliers with a clean electricity share of 85% or higher, provided there is no backsliding.

• The CEPP requires eligible retail electricity suppliers to increase their clean electricity share by 4 percentage points (pp) each year between 2023 and 2030. Suppliers achieving this increase receive a Department of Energy (DOE) grant, while those who fail to meet the target must pay a penalty for each megawatt-hour they are short of the goal.
• Clean electricity is defined by an emission rate of 0.10 metric tons of CO2-equivalent greenhouse gas emissions or less per MWh of electricity generated. This definition includes nuclear energy, all renewable forms, and fossil fuel sources that sequester or capture nearly all CO2 emissions.
• Suppliers can use a flexibility mechanism to average their clean electricity increases over a two-year period (requiring an 8 pp increase) or a three-year period (requiring a 12 pp increase) to account for uneven growth or operational variations.
• Suppliers with a certified clean electricity share of 85% or more are exempt from making payments if they fail to meet the 4 pp annual increase, provided they do not experience backsliding, though they must still meet the 4 pp target to receive grants.
• Grants awarded under the CEPP must be used solely for ratepayer benefits, which includes worker retention, energy efficiency, investments in qualified clean electricity, and direct bill assistance.

APA

Clean Air Task Force (n.d.). Clean Electricity Performance Program: A Primer. https://www.catf.us/wp-content/uploads/2021/09/CATF_CEPP_Primer_09.21.21.pdf

Chicago

Clean Air Task Force. Clean Electricity Performance Program: A Primer. n.d. https://www.catf.us/wp-content/uploads/2021/09/CATF_CEPP_Primer_09.21.21.pdf.

Wikipedia

{{cite report |author=Clean Air Task Force |title=Clean Electricity Performance Program: A Primer |url=https://www.catf.us/wp-content/uploads/2021/09/CATF_CEPP_Primer_09.21.21.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforcendclean, author = {{Clean Air Task Force}}, title = {{Clean Electricity Performance Program: A Primer}}, institution = {Clean Air Task Force}, url = {https://www.catf.us/wp-content/uploads/2021/09/CATF_CEPP_Primer_09.21.21.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }