Washington Climate Challenge

1. Washington Climate Challenge Climate Advisory Team Meeting #1 March 30, 2007 WA Departments of Ecology & Community Trade & Economic Development (CTED) Center for Climate Strategies Ross & Associates

2. Welcome and Introductions • Departments of Ecology and CTED • Climate Advisory Team members • Agency Advisors • Ross & Associates and the Center for Climate Strategies www.ecy.wa.gov/climatechange

3. Agenda • Purpose of and Charge to the Climate Advisory Team (CAT) • How to proceed to fulfill the CAT’s charge • Review the CAT Step-Wise Approach • Relationship between the CAT and Technical Working Groups • Current “State of Play” of Climate Change in Washington • Review of the Draft Washington Emissions Inventory & Forecast and introduction to the Catalog of Climate Emission Reduction Actions • Next Steps for the CAT and TWGs, including Schedule and Logistics for Next CAT Meeting • Public Comment www.ecy.wa.gov/climatechange

4. Purpose & Key Outcomes • Purpose of the CAT • Develop recommendations for achieving the goals laid out in Executive Order 07-02 • Charge to the CAT • Review and approve state greenhouse gas (GHG) inventory and forecast • Review and assess recent actions taken and impacts on goals • Identify actions to meet 2020 goals for GHG emissions, job creation fuel savings • Evaluate opportunities for regional collaboration • Identify state lead-by-example opportunities • Identify ways to coordinate state and local GHG reduction actions • Inform and involve the public • Report to ECY/CTED by January 2008 www.ecy.wa.gov/climatechange

5. CAT and Climate Change Challenge • ECY & CTED oversee and coordinate process • CAT makes recommendations to ECY/CTED • CAT provides guidance to the Technical Working Groups (TWGs) • TWGs assist the CAT • CCS & Ross provide facilitation, technical support and analysis • Public input and review www.ecy.wa.gov/climatechange

6. www.ecy.wa.gov/climatechange

7. Key Principles of the Process • Transparent • Inclusive • Step-wise • Fact-based • Strive for consensus www.ecy.wa.gov/climatechange

8. Transparency • Policy Design • Timing, goals, coverage, implementation methods • Economic analysis • Data sources • Quantification methods • Key assumptions www.ecy.wa.gov/climatechange

9. Inclusive and Comprehensive • All GHG’s • All sectors • All potential implementation mechanisms • State and multi-state actions • Short and long term actions www.ecy.wa.gov/climatechange

10. Step-Wise • Sequential, incremental • Participants are asked not to reconsider decisions already made in the stepwise process • Once the CAT reaches a milestone by consensus or vote, it moves to the next step • Sufficient time, information and interaction between steps • CAT stays current with information and decisions www.ecy.wa.gov/climatechange

11. Fact-based • Preliminary fact finding • Inventory and forecast of GHG emissions • Inventory of state actions, studies • Joint fact finding and policy development • Inventory and forecast of emissions • Priorities for analysis, policy description, policy design specifications, implementation mechanisms, alternative solutions www.ecy.wa.gov/climatechange

12. Strive for Consensus • Votes taken to advance to next steps • Consensus driven • Discussion and alternatives to resolve conflicts, if any • Final votes include support at three levels • Final report will document level of support www.ecy.wa.gov/climatechange

13. CAT Charter • Provide leadership and vision for devising solutions that meet the goals of the Executive order • Give consideration to Washington’s unique emission portfolio • Represent a wide range of experience and sectors • Co-chaired by the Directors of ECY and CTED www.ecy.wa.gov/climatechange

14. CAT Ground Rules • Support the process • No debate on the science of climate change, the goals established in Executive Order 07-02, or the timeline • All members have equal footing during deliberations and decisions • Attend meetings and stay current with information provided to the group and all group decisions • No backsliding • Must be able to vote or take a position at meetings • Make objective contributions www.ecy.wa.gov/climatechange

15. Questions? www.ecy.wa.gov/climatechange

16. The Challenge • “The ultimate objective of this Convention .... is to achieve, .… stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.” • UNFCCC Article 2 Objective, • Rio De Janeiro www.ecy.wa.gov/climatechange

17. Stepwise Planning Process • Develop inventory and forecast of emissions • Identify a full range of possible actions • Identify initial priorities for analysis • Develop straw proposals • Quantify GHG reductions and costs/savings • Evaluate externalities, feasibility issues • Develop alternatives to address barriers • Aggregate results • Iterate to final agreements • Finalize and report recommendations www.ecy.wa.gov/climatechange

18. Decision Criteria • GHG Reduction Potential (MMTCO2e) • Cost or Cost Saved Per Ton GHG Removed • Fuel Savings • Job Creation • Externalities • Feasibility Issues www.ecy.wa.gov/climatechange

19. US States: 30 of Top 75 World Emitters WA = #26 among US States, #77 in world www.ecy.wa.gov/climatechange

20. States Set the Bar… • Goals • Policies • Innovation • Implementation • Consensus • Conflict resolution www.ecy.wa.gov/climatechange

21. State GHG Growth Rates Data from the Center for Climate Strategies, 2006-2007, and US DOE, 2005 FL = 88% US = 50% www.ecy.wa.gov/climatechange

22. State Climate Plans www.ecy.wa.gov/climatechange

23. State Actions Since 2000 • GHG State Emissions Inventories and Forecasts • 25 recent • Energy and Climate Policies and Mechanisms • 300+ types undertaken, more underway • State Climate Action Plans • 22 complete or underway, more likely • Statewide GHG targets and timetables • 13 current, 9 underway • Reporting systems and or registries • 30 underway • Regional actions • NEG/ECP, WRCAI, RGGI www.ecy.wa.gov/climatechange

24. State Climate Goals www.ecy.wa.gov/climatechange

25. AZ Climate Plan Results www.ecy.wa.gov/climatechange

26. Categories of Action • Energy efficiency and conservation • Clean and renewable energy • Transportation • Forestry • Agriculture • Waste management • Industrial process improvement www.ecy.wa.gov/climatechange

27. States’ “Wedges” www.ecy.wa.gov/climatechange

28. Implementation Methods • Voluntary Agreements • Technical Assistance • Financial Incentives • Targeted Spending • Codes and Standards • Market Based Approaches • Pilots and Demos • Information and Education • Research and Development • Reporting and Disclosure www.ecy.wa.gov/climatechange

29. Screening of Potential Actions - Agriculture Sample www.ecy.wa.gov/climatechange

30. Policy Design Proposals • CAT identifies about 50 draft potential options for further development • TWGs screen, prioritize, and propose initial policy option design (“straw proposals”) • Timing • Goals • Coverage • CCS quantifies and presents for review • CAT revisits list of potential priorities, as needed www.ecy.wa.gov/climatechange

31. Policy Option Template • Policy description (concept) • Policy design (goals, timing, coverage) • Implementation methods • Related programs and policies • Estimated GHG savings and costs per MMTCO2e • Data sources, methods and assumptions • Key uncertainties • Additional (non-GHG) benefits and costs, as needed • Feasibility issues, if needed • Status of group approval • Level of group support • Barriers to consensus, if any www.ecy.wa.gov/climatechange

32. A “Portfolio” of Policy Options www.ecy.wa.gov/climatechange

33. CAT Final Report to ECY/CTED • Executive Summary • Background, Purpose And Goals • Description of the Process • History and Status of State Actions • WA Emissions Inventory & Forecast • CAT Policy Recommendations & Results • Energy Supply • Residential, Commercial, Industrial • Transportation • Agriculture • Forestry • Waste Management • Cross Cutting Issues • Appendices www.ecy.wa.gov/climatechange

34. Timing and Milestones www.ecy.wa.gov/climatechange

35. Questions? www.ecy.wa.gov/climatechange

36. CAT and TWGs CAT Review existing and planned state actions Identify potential options for design and priorities for analysis Recommend actions to achieve the EO goals Technical Working Groups (TWGs) Analysis, review and early ranking of options Develop initial straw proposals for design Input and review of CAT recommendations and reports Review state GHG inventory and forecast TWG process is fully integrated with the CAT TWGs serve in an advisory role to CAT CAT membership on the Technical Working Groups www.ecy.wa.gov/climatechange

37. TWG Areas of Focus • Transportation • Vehicle efficiency, alternative fuels & demand reduction programs, land use • Residential, Commercial, and Industrial (RCI) • Energy efficiency & conservation, industrial process, “customer side” of the meter • Energy Supply • Heat and power generation; electrical generation, supply, transmission • Agriculture • Biofuels, waste reduction, recycling & energy recovery, solid waste management • Forestry • Forest restoration, sustainable forest management, wood energy, sequestration www.ecy.wa.gov/climatechange

38. Questions? www.ecy.wa.gov/climatechange

39. Break www.ecy.wa.gov/climatechange

40. “State of Play” • Why we need to take action now • What We’ve Already Done • How Our Actions Tie to Others – The Local, Regional, and National Connections • The Role of Preparation and Adaptation www.ecy.wa.gov/climatechange

41. Why we need to act • Emissions growth • Population growth www.ecy.wa.gov/climatechange

42. Environmental Challenges • Rising sea level • Decline in snow pack • Milder winters, warmer summers • Increase in wildfire risk • Changes in peak river flows www.ecy.wa.gov/climatechange

43. Economic Challenges • Costs of fighting fire may increase 50% by 2020 - $75 million • Water restrictions/higher water prices in the Yakima Basin • Increased costs for shoreline protection – seawalls, coast erosion • Increase municipal water costs www.ecy.wa.gov/climatechange

44. Opportunities • Economic growth • Clean energy leadership • Avoided damages • Shape policy • Form markets • Political leadership www.ecy.wa.gov/climatechange

45. Accomplishments to-date • Required all new fossil fuel power plants to reduce greenhouse gas emissions (RCW 80.70) • Adopted the California Car Standards • Reduces CO2 emissions in newer cars and light trucks by more than 30% and in SUVs by 25% • Adopted renewable fuels standards for transportation by requiring 2% of fuel sold is biodiesel or ethanol • Funded the Energy Freedom Loan Program to support in-state biofuels production • Instituted high-performance green building standards • Have one of the most energy-efficient building codes in the nation www.ecy.wa.gov/climatechange

46. Accomplishments – cont. • Retrofitting most polluting diesel school buses and local government vehicles • Passed a renewable and energy efficiency initiative - Energy Independence Act • Implemented electric utility conservation programs • Reduced energy use by state agencies through EO 05-01 • Adopted appliance efficiency standards www.ecy.wa.gov/climatechange

47. How the Climate Challenge Ties to other Actions • 2003 West Coast Governor’s Global Warming Initiative • 2003/04 Climate Protection Advisory CommitteePuget Sound Clean Air Agency • 2005/06 Legislative Session – CA Vehicle Emissions Standards, Appliance Efficiency Standards, Green Buildings, Biofuels Content • 2007 Western Climate Action Initiative – WA, OR, CA, AZ, NM www.ecy.wa.gov/climatechange

48. WA Local Government Actions • Puget Sound Clean Air Agency • King County • City of Seattle • Cities participating in the Climate Change Protection Campaign: • Bellingham, Burien, King County, Olympia, Seattle, Spokane, Spokane County, Tacoma www.ecy.wa.gov/climatechange

49. Western Climate Action Initiative • WA, OR, CA, AZ, NM signed in February 2007 • Three Goals • Set an overall regional goal within 6 months • Develop a design for a market-based, multi-sector mechanism, such as load-based cap and trade program within 18 months • Participate in a multi-state GHG registry • Detailed Work Begins in April www.ecy.wa.gov/climatechange

50. 2007 Proposed legislation • Climate change, SB 6001 (ESSB version): • Adopt Governor’s goals and establish electrical sector performance mechanisms • Cleaner energy, HB 1303 (E2SHB version): • Provisions for further use and production of biofuels and ethanol • Renewable energy, several House and Senate bills: • Anaerobic digestion power, renewable fuel standards, solar hot water, sustainable energy trust www.ecy.wa.gov/climatechange