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reduction from 2000 CO emission levels from AEP generating facilities by 2030; the long-term goal is net-zero CO emissions from AEP generating facilities by 2050. AEP has made significant progress in reducing CO emissions from its power generation fleet and expects its emissions to continue to decline. Technological advances, including advanced energy storage, modular nuclear, and green hydrogen, and public policies are among the factors that will determine how quickly AEP can achieve net-zero emissions while continuing to provide reliable, affordable power for customers. AEP will publish a new report in 2021 on the results of a climate change scenario analysis. 2 2 2 

## Other Environmental Issues and Matters 

The Comprehensive Environmental Response, Compensation and Liability Act of 1980 imposes costs for environmental remediation upon owners and previous owners of sites, as well as transporters and generators of hazardous material disposed of at such sites. See “The Comprehensive Environmental Response Compensation and Liability Act (Superfund) and State Remediation” section of Note 6 included in the 2020 Annual Report for additional information. 

## Environmental Investments 

Investments related to improving AEP System plants’ environmental performance and compliance with air and water quality standards during 2018, 2019 and 2020 and the current estimate for 2021 are shown below. These investments include both environmental as well as other related spending. Estimated construction expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints, environmental regulations, business opportunities, market volatility, economic trends and the ability to access capital. In addition to the amounts set forth below, AEP expects to make substantial investments in future years in connection with the modification and addition at generation plants’ facilities for environmental quality controls. Such future investments are needed in order to comply with air and water quality standards that have been adopted and have deadlines for compliance after 2020 or have been proposed and may be adopted. Future investments could be significantly greater if emissions reduction requirements are accelerated or otherwise become more stringent. The cost of complying with applicable environmental laws, regulations and rules is expected to be material to the AEP System. AEP typically recovers costs of complying with environmental standards from customers through rates in regulated jurisdictions. Failure to recover these costs could reduce future net income and cash flows and possibly harm AEP’s financial condition. See “Environmental Issues” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 6 - Commitments, Guarantees and Contingencies included in the 2020 Annual Report for additional information. 

## Historical and Projected Environmental Investments 

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(a) Includes expenditures of the subsidiaries shown and other subsidiaries not shown. The figures reflect construction expenditures, not investments in subsidiary companies. 

(b) Estimated amounts are exclusive of debt AFUDC. 

Management continues to refine the cost estimates of complying with air and water quality standards and other impacts of the environmental proposals. The following cost estimates for the years 2021 through 2027 will change depending on the timing of implementation and whether the Federal EPA provides flexibility in the final rules. These cost estimates will also change based on: (a) potential state rules that impose more stringent standards, 

