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c2es.org. Regional Climate Alliances Spring 2008. 2/27/2007 15% below 2005 by 2020 cap and trade. 11/15/2007 set emissions targets by 11/15/08 ~60-80% cuts by ???? (2040?) cap and trade; C inventory, reporting full implementation by mid-2011. 12/20/2005 cap emissions at
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Regional Climate Alliances Spring 2008 2/27/2007 15% below 2005 by 2020 cap and trade 11/15/2007 set emissions targets by 11/15/08 ~60-80% cuts by ???? (2040?) cap and trade; C inventory, reporting full implementation by mid-2011 12/20/2005 cap emissions at current levels by 2009, reduce by 10% by 2019
Regional Climate Alliances Spring 2010 Dec 20, 2005, eff. 1/1/09 Nov 15, 2007, in devt Feb 26, 2007, eff. 1/1/12 (goal = -15% of 2005 levels by 2020) June 25, 2008, not eff. yet
Regional Climate Alliances Spring 2012 Transportation Climate Initiative (2010 declaration from 11 states)
X X Regional Climate Alliances Spring 2013 X X X X * no action since 2010 * now only CA and Canadian provinces
and then there were two: • Western Climate Initiative (CA, BC, Quebec) • -15% of 2005 by 2020 • - cap and trade programs linked www.wci-inc.org
2) Regional Greenhouse Gas Initiative (RGGI) CT, DE, ME, MD, MA, NH, NY, RI, VT current cap: 91 million short tons CO2/yr www.rggi.org
RGGI emissions by source http://www.epa.gov/statelocalclimate/resources/state_energyco2inv.html
Regional Greenhouse Gas Initiative (RGGI) • set regional limits on GHG emissions from electric power plants & transportation • based on “Model Rule”, but each state can design their own strategy • for implementation (state targets set for 2009 emissions) • came into force in 2009 • power plant emissions remain constant through 2014, fall by 10% by 2018 • REVISED 2012: -40% by 2014, and -50% by 2020 • “cap & trade” mechanism: RGGI states will set GHG cap and then auction • permits equal to the tons of CO2 allowed by the cap • - auctions are quarterly (next one March 11th, 2015)
Basic elements of Model Rule: • applicability: applies to fossil fuel-fired electric generating units >25MW • (covers 25% of regional GHG emissions) • 2) size & structure of cap: • a) states must stabilize power sector CO2 emissions at 2009 emissions during implementation (2009-2014) • b) then reduce emissions by 2.5%/yr for 2015-2018 • (total reductions of 10% below 2009 levels by 2018) • 3) permitting: each CO2 source must have approved CO2 budget emission monitoring plan (EMP); developed by state energy regulators • 4) allowance allocation: most CO2 allowances auctioned off (vs. ETS) • 25% allowances to support consumer benefit programs • 5) temporal flexibility mechanisms: • facilities can “bank” or “rollover” CO2 allowances • early reduction allowances granted for early demonstrated reductions • extended compliance period
Basic elements of Model Rule: (cont.) • 6) emissions monitoring: CO2 unit must install and certify monitoring system, report quality-controlled data (borrows from EPA acid rain program) • 7) offsets: awards CO2 offset allowances to projects outside capped sector that sequester/reduce CO2 emissions (limited to 3.3% of unit’s total compliance obligation) • must be “real, additional, verifiable, enforceable, and permanent.” • http://rggi.org/market/offsets/categories • includes SF6 emissions, trees, building HVAC efficiency (nat gas, oil, propane), landfill methane capture • 8) price triggers: • stage 1: if CO2 allowance cost >$4, CO2 offsets can increase • stage 2: if CO2 allowance cost >$10, CO2 offsets increase more, • compliance period extended, international CO2 credits allowed
Who stands to gain here? Who stands to lose? Or is it that simple? What would you do as a power company in a RGGI state? What is leakage? and how does it impact RGGI?
LEAKAGE • - a shift of electricity generation from capped sources subject to RGGI to higher-emitting sources not subject to RGGI. • -impossible to predict ahead of time (market and political forces unknown) • -RGGI proposes to: • track load vs. generation • monitor C-intensive nature of non-RGGI power • policy options:1) reduce electricity demand (efficiency), so indirectly reduce leakage • 2) limit the amount of CO2 (<xx lbs CO2/MWh) that could be “emitted” through long-term purchasing agreements between RGGI utilities and regional power plants • 3) emissions portfolio standard
How much money did they make? Across three past CO2 allowance auctions, cost ~$1.93/ton
How much did it cost the average customer? Distributing the CO2 allowance costs around the ratepayers in those States, RGGI costs added $0.43/month to the average electric utility bill. Where did all this money go? http://rggi.org/images/Reinvestment.JPG
http://rggi.org/docs/Documents/2012-Investment-Report_ES.pdf
Has RGGI reduced emissions? [does it matter?] http://fivethirtyeight.com/features/the-cap-matters-most-in-cap-and-trade-markets/
no big difference between RGGI and non-RGGI states, so far http://fivethirtyeight.com/features/the-cap-matters-most-in-cap-and-trade-markets/
fuel switching (coal to natural gas) reduced CO2 emissions http://www.eia.gov/todayinenergy/detail.cfm?id=14851
new cap will challenge RGGI’s effectiveness http://fivethirtyeight.com/features/the-cap-matters-most-in-cap-and-trade-markets/
a different perspective source: rggi.org
Categories of State GHG activities • Vehicle Emissions Standards • Renewable Portfolio Standards • 3) Efficiency Standards/Programs • 4) Cap and Trade programs Most content in the following section from Center for Climate and Energy Solutions (c2es.org)
Vehicle Greenhouse Gas Emissions Standards – California leads the way 2002: CA passes law requiring 30% emissions reductions by 2012 2002-2007: EPA stalls on granting CA waiver to step outside federal emissions standards in response to industry complaints 2007: CA files lawsuit against EPA for stalling 2009: EPA grants CA waiver to set standards *if* changes to 2016 timelines to be consistent with Obama CAFE standards
Federal Corporate Average Fuel Economy (CAFÉ) standards CAFÉ standards current: 35.5 by 2012-1016 future?: 54.5 by 2025
Low-carbon Fuel Standard: a lifecycle analysis of trans. fuel sources Ex from California: fuel providers must reduce C intensity of fuel mix 10% by 2020
Renewable Portfolio Standards Ranges from: CA: 33% by 2020 TX: 5% by 2015 NY: 30% by 2015 CO: 30% by 2020 NC: 12.5% by 2021
Energy Efficiency Standards and Targets
Hydraulic Fracturing Chemical Disclosure Map
Public benefit funds Net metering programs allows costumers to sell electricity back to grid through electricity bills and/or utility charges Green Pricing GaPower optional: $5/100kwhr; green power w/ 50% solar; ~$50/month additional cost