Energy Storage Benefit-Cost Analysis

Prepared on behalf of the Clean Energy States Alliance

Authors: Bryndis Woods, PhD, Sachin Peddada, Elisabeth Seliga, Chirag Lala, Eliandro Tavares, Gabriel Lewis, Tsanta Rakotoarisoa, Elizabeth A. Stanton, PhD

Contributing Editor: Todd Olinsky-Paul, Clean Energy States Alliance

AEC staff prepared a report that provides a framework for state energy agencies contemplating a benefit-cost analysis (BCA) for battery storage on behalf of the Clean Energy States Alliance. AEC’s battery storage BCA framework provides guidance for state energy agencies preparing to conduct cost-effectiveness evaluation for battery storage, including information regarding: cost-effectiveness tests, discount rates, benefits, costs, sensitivity analyses, and stakeholder engagement.

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An Analysis of NHTSA's Preliminary Regulatory Impact Analysis of 2021 Proposed Rulemaking for Model Years 2024-2026 Light-Duty Vehicle CAFE Standards

Clients: Office of the California Attorney General and the California Air Resource Board

Authors: Liz Stanton, PhD, Gabriel Lewis, and Chirag Lala

October 2021

On behalf of the Office of the California Attorney General and the California Air Resource Board, this Applied Economics Clinic white paper examines the National Highway Traffic Safety Administration’s (NHTSA) Proposed Rulemaking for Model Years 2024-2026 Light-Duty Vehicle Corporate Average Fuel Economy Standards. The proposal would increase the stringency of Corporate Average Fuel Economy (CAFE) standards from their 2020 levels, setting the standards close to the path established in 2012. The NHTSA provides an estimate of the expected benefits in its 2021 Preliminary Regulatory Impact Analysis (PRIA), and it expects benefits in fuel savings, energy security, and drive value.Our analysis finds the estimated benefits to be a conservative estimate. Other benefits not included in the cost-benefit analysis would increase the net benefits and provide additional support for stricter fuel economy standards, if included in NHTSA’s comparison.

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An Analysis of EPA's Proposed Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions Standards

Client: Office of the California Attorney General

Authors: Liz Stanton, PhD, Gabriel Lewis, and Chirag Lala

September 2021

On behalf of the Office of the California Attorney General, this Applied Economics Clinic white paper examines the Environmental Protection Agency’s  (EPA) Proposed Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions Standards. The proposal would increase the stringency of the Safer Affordable Fuel-Efficient (SAFE) Vehicles rule from their 2020 levels, setting the emissions standards close to the path established in the 2012 National Program for controlling light-duty vehicle greenhouse gas emissions. The EPA provides an estimate of the expected benefits in its 2021 Draft Regulatory Impact Analysis (DRIA), highlighting the proposal’s energy security benefits. Our analysis finds the estimated benefits to be a conservative estimate. Other benefits not included in the cost-benefit analysis would increase the net benefits and provide additional support for stricter greenhouse gas emissions standards, if included in the EPA’s calculations. AEC also compared the 2021 DRIA with the Final Regulatory Impact Assessment (FRIA) of the implemented 2020 SAFE final rule, finding that the methodology of the 2021 DRIA is more reliable than that of the 2020 FRIA.

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