Governor’s Energy Plans: Greenhouse Gas Emissions Benefits

1. Governor’s Energy Plans: Greenhouse Gas Emissions Benefits David Baker February, 2007

2. Governor’s Energy Plans • Sustainable Energy Plan • Renewable Portfolio Standard (RPS) • Energy Efficiency Portfolio Standard (EEPS) • Energy Independence Plan • Expanded RPS and EEPS • Energy Efficiency Revolving Loan Funds • Residential Energy Efficiency Building Code • Expanded Biofuels Capacity and Access • Invest in Coal Gasification/Enhanced Oil & Gas Recovery • Reduced Vehicle Emissions / Alternatives to Driving

3. Energy Benefits By 2017, 50% of our motor fuel and 25% of our natural gas in Illinois can come from alternative sources. Motor Fuel Natural Gas TODAY 2017 TODAY 2017 Reduced consumption Reduced consumption Traditional Traditional sources sources Traditional Traditional sources sources 50% Biodiesel & Diesel from Coal 25% Coal Gasification / Methane Extraction 23% Ethanol Biodiesel Ethanol/ IL Crude 1% Alternatives

4. Illinois Sustainable Energy PlanPer Gov. Blagojevich’s 2005 State of the State Proposal Goals: • Reduce total energy costs for consumers • Reduce the cost of doing business in Illinois by reducing total energy costs for businesses • Capture economic development benefits of renewable energy and energy efficiency development • Increase in-state self-reliance for energy • Improve environmental quality in Illinois

5. Governor’s Energy Independence PlanGoals Develop Illinois’ unique natural resources to: • Meet 50% of our motor fuel needs by 2017, and 25% of the natural gas we use by 2017. • Give consumers real energy choices that can help them use less energy and save money. • Create thousands of jobs from new fuel production plants and from increased demand for agricultural crops and coal. • Clean our air and reduce greenhouse gas emissions that lead to global warming, by cutting consumption of motor fuel.

6. Energy Alternatives Each element will play a key role in moving Illinois toward reduced dependence on imported energy. Projected Benefits Elements of Our Plan • Invest in renewable biofuels like ethanol and biodiesel • Make biofuels more available and more usable • Invest in natural gas, diesel fuel and electricity made from Illinois coal • Use recaptured CO2 to extract more oil and gas • Invest in renewable power / energy efficiency and reduce consumption 50% of our motor fuel needs will be met by Illinois crops by 2017 100% of gas stations will provide E-85 biofuels by 2017 (up from 2% today) 25% of our natural gas will come from Illinois coal by 2017 Double Illinois’ oil production and boost natural gas production Generate cleaner electricity and reduce heating and electricity costs for homes and businesses

7. Wind Monitoring Sites(with Public Data) Adequate Wind Capacity Illinois Institute for Rural Affairs, Western Illinois University. Funding from Illinois Clean Energy Community Foundation

8. Renewable Generation under RPS Scenario from draft report, “Emissions Impact Assessment for the Sustainable Energy Plan Based on Economic Dispatch Considerations”, Illinois Energy Resources Center, Feb. 2006

9. Wind Projects Under Development in Illinois, February 2007

12. Intersection of Two Major RTOs

13. Fuel Displaced Depends on Load Shape and Availability of Resource PJM, “Marginal Fuel Type Data”, 2004, from PJM website

14. Average Monthly Wind Generation Sources: Illinois Institute for Rural Affairs, Western Illinois University, data from wind monitoring stations, June 2005-May 2006.

15. Wind Availability vs. Electric LoadAugust Sources: PJM Hourly Load Data for Commonwealth Edison, August 2005. Illinois Institute for Rural Affairs, Western Illinois University, wind data from northern Illinois monitoring stations, June 2005-May 2006.

16. Preliminary Results: Change in Illinois Generation, 2007-2013 Source: PowerWorld Corporation, Draft Report, “Emissions Impact Assessment for the Illinois Sustainable Energy Plan Based on Transmission System Security Constrained Optimal Power Flow Considerations”, September 2006