State Climate Actions: Scoring Issues December 5, 2008

1. State Climate Actions: Scoring IssuesDecember 5, 2008 Thomas D. Peterson Center for Climate Strategies

2. Stepwise Planning Process • Get organized • Review and refine inventory & forecast of emissions • Identify a full range of possible mitigation policy actions • Identify initial draft “priority for analysis” policy options • Develop “straw” policy design proposals • Quantify initial GHG reductions and costs/savings • Incorporate other criteria as needed (externalities, feasibility issues) • Modify policy design, analysis based on feedback and barriers • Finalize policy design and analysis; aggregate and integrate results • Finalize recommendation language www.climatestrategies.us 2

3. Fact Finding • Preliminary fact finding • Inventory and forecast of GHG emissions • Inventory and results of state actions • Joint fact finding and policy development • Inventory and forecast of emissions • Policy recommendation list, design, impacts www.climatestrategies.us 3

4. Step 3: Expand the Catalog of States Actions Over 300 actions taken by US states Existing, planned and proposed state level actions Wide variety of US states All sectors Wide variety of implementation mechanisms Include key PA actions Advisory Group adds new potential actions Starting place for identification of priorities for analysis Ongoing list for future reference www.climatestrategies.us 4

5. Decision Criteria • GHG Reduction Potential (MMtCO2e) • Cost or Cost Saved Per Ton GHG Removed • Externalities (Co-benefits, etc.) • Feasibility Issues www.climatestrategies.us 5

6. Step 4: Identify Initial Draft Priorities for Analysis • Advisory Group identifies about 50 initial potential options for analysis and development. www.climatestrategies.us 6

7. Step 5: Craft Straw Policy Design Proposals • TWGs propose initial policy option design (“straw proposals”) with key parameters of analysis • Timing • Goals • Coverage • Analysts work with TWGs to set up quantification • Options are quantified and fleshed out for review and approval by the full Advisory Group www.climatestrategies.us 7

8. Transparency • Policy Design • Timing, goals, coverage, implementation methods • Economic analysis • Data sources • Quantification methods • Key assumptions • Key uncertainties www.climatestrategies.us 8

9. Step 9: Conduct Aggregate Analysis • Integrate measures within and across TWGs • Assess supply and demand interactions • Assess other interactions if/as needed • Compare with established or proposed goals • Assess needs for margin of safety, etc. www.climatestrategies.us