2/27/2007 15% below 2005 by 2020 cap and trade

1. 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 http://www.pewclimate.org/what_s_being_done/in_the_states/regional_initiatives.cfm

2. 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

3. Regional Climate Alliances Spring 2012 Transportation Climate Initiative (2010 declaration from 11 states)

4. X X Regional Climate Alliances Spring 2013 X X X X * no action since 2010 * now only CA and Canadian provinces

5. 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 • “cap & trade” mechanism: each state will set GHG limits and then issue • permits equal to the tons of CO2 allowed by the cap

6. 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 • 6) price triggers: • stage 1: if CO2 allowance cost >$7, CO2 offsets can increase • stage 2: if CO2 allowance cost >$10, CO2 offsets increase more, • compliance period extended, international CO2 credits allowed

7. Basic elements of Model Rule: (cont) • emissions monitoring: CO2 unit must install and certify monitoring system, report quality-controlled data (borrows from EPA acid rain program) • 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 prove “additionality” • 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?

8. 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

9. How did the states dole out allowances? • different than ETS, most allowances auctioned off; • last auction in December, 2012: 100% of allowances auctioned off

10. How much money did they make? Across three past CO2 allowance auctions, cost ~$1.93/ton

11. 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?

13. Has RGGI reduced emissions? [does it matter?]

14. source: rggi.org

15. Improvements Feb 13 2013 • will cut 2014 allowance by 45%, decrease by 2.5% thereafter • (goal is to reduce emissions by 45% below 2005 levels by 2020) • cost containment = $4/ton in 2014, $6 in 2015, up to $10 in 2017 • (estimate additional $2.2billion in funds for reinvestment) • new forestry offset protocol • better tools to address “leakage”

16. 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)

17. 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

18. Federal Corporate Average Fuel Economy (CAFÉ) standards CAFÉ standards current: 35.5 by 2012-1016 future?: 54.5 by 2025

19. Plug-in electric vehicles

20. Biofuels

21. 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

22. 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

23. Financial Incentives for CCS

24. Energy Efficiency Standards and Targets

25. Hydraulic Fracturing Chemical Disclosure Map

26. 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

27. Appliance Efficiency Standards

28. Residential Building Energy Codes

29. Commercial Building Energy Codes

30. State Building Efficiency Requirements