1. 1 Debra Jacobson GWU Law School MWCOG Air Quality Town Hall Meeting Oct. 19, 2006 Promoting Clean Air with Energy Efficiency & Renewable Energy

2. 2 OVERVIEW The energy-clean air nexus What can we do in the energy arena? Near-term opportunities State Clean Air Interstate Rules EERE measures in ozone SIP Longer-term opportunities EERE measures in PM 2.5 SIP EERE and climate policy

3. 3 Source: 1996 EPAEmissions Trends ReportandEIA Emissions of Green House Gases in the U.S. Percent of U.S. Emissions from Fossil Fuel Use 100% 80% 60% 40% 20% 0% CO2 NOx SO2 VOC CO 98% 91% 97% 5 2% 85% ENERGY & AIR QUALITY

4. 4 WHAT CAN WE DO? Increase energy efficiency and substitute cleaner sources of energy in: Electric generation; Buildings; Transportation; and Industrial uses.

5. 5 NEAR-TERM OPPORTUNITIES “Window of opportunity” in next six months: Development of State Clean Air Interstate Rules to promote energy efficiency and renewable energy (EERE); Development of State Implementation Plans (SIPs) to address the 8-hour ozone standard.

6. 6 NEAR-TERM OPPORTUNITIES State Clean Air Interstate Rules: Allocation of nitrogen oxide (NOx) allowances to spur EERE projects is key; Different status in 3 jurisdictions: VA Combined new source/EERE set-aside of 5% of NOx allowances Final rule expected by December 2006 DC & MD - Internal deliberations ongoing

7. 7 NEAR-TERM OPPORTUNITIES EERE measures in 8-hour ozone SIP – measures under consideration: Increased wind energy purchases; Retrofit of traffic signals with LED lights; DC and MD Renewable Portfolio Standards; Energy performance contracting; and Building energy codes & green building standards.

8. 8 LONGER-TERM OPPORTUNITIES Inclusion of EERE measures in SIP to meet the fine particulate standard (PM 2.5) Allocation of allowances to EERE in any greenhouse gas emissions trading program.

9. 9 CONTACT INFORMATION Debra Jacobson The George Washington University Law School djacobson@law.gwu.edu DJ Consulting LLC djconsultingllc@earthlink.net