1. Washington State: Climate Initiative http://www.ecy.wa.gov/climatechange/

2. Washington State: Climate Initiative State Actions: Executive Executive Orders: Reduce State Government energy and fuel consumption: (20% 2003 baseline) Emissions reduction, clean energy jobs and imported fuel goals Emission Reduction: 1990 levels by 2020 25% below 1990 by 2025 50% below 1990 by 2050 Clean Energy Jobs: Create 25,000 clean energy jobs by 2020 (2004 Employment was 8,400) Imported Fuel Costs: Reduce expenditures on imported fuel by 20% by 2020 Establish Climate Advisory Team to develop strategic recommendations to meet climate goals

3. Washington State: Climate Initiative Legislative/Regulatory Decisions California clean car standards beginning with 2009 models: 27% reduction in ghg emission by 2020. Affects only vehicles less than 10,000lbs * Stringent energy-efficient building codes * Stringent efficiency standards for appliances * High performance “green” building standards. Leadership in Energy Efficient Design (LEED) certification for buildings built with state dollars * Partial Carbon Dioxide (CO 2 ) mitigation for new or expanded power plants: Mitigate 20% or CO 2 emissions either thru direct action or paying a fee per ton to a third party who would invest in mitigation actions * Solar energy tax incentives * Energy conservation programs * Initiative for clean, renewable energy. Renewable Portfolio Standards (RPS) for electricity generation; 15% renewables by 2020. Applies to utilities with more than 25,000 customers * Emissions performance standard (EPS) for new power plants and power purchases under long-term contract: EPS equals 1100lbs CO 2 per megawatt hour – equivalent to a combined cycle natural gas Greenhouse gas inventory with biennial updates Governor’s greenhouse gas reduction goals incorporated in statute as required targets.

4. Washington State: Climate Initiative Legislative/Regulatory Decisions: Continued Renewable fuels standard (RFS) for motor fuels: 2% biodiesel and ethanol averaged across the state’s motor fuel. Can increase to 10% conditioned on available WA feedstock and for ethanol a certification by Ecology that it wont cause problems in meeting federal ozone standards. Rules for geologic sequestration of carbon dioxide. Update State Environmental Policy Act (SEPA) to ensure assessment of climate impacts from proposed projects Green House Gas (GHG) emissions labeling for motor vehicles Integrate climate change assessment into growth management planning by local governments. Mandatory reporting of greenhouse gases Develop legislation and plan by 12/1/2008 to implement WCI cap – trade and to meet statutory 2020 GHG reduction goal * Successfully implementing these existing policies will provide about 65% of the emission reductions needed to meet the state’s goals for 2020

5. Washington State: Climate Initiative Regional Actions: TCR Help shape TCR data requirements and protocols to be compatible with WA and WCI needs Regional Actions: WCI Help shape scope, reporting, allocation, electricity and offsets associated with a regional cap and trade system Work closely with Washington stakeholders to find common ground for cap and trade design elements

6. Washington State: Climate Initiative Issues: Resources – Agency Coordination Federal Actions Co – Benefits, Alignment with Other Partners CA waiver lawsuit

7. Washington State: Climate Initiative Resources – Agency Coordination: Coordination: Governor’s office policy lead established Natural Resources Cabinet – Monthly Meeting Ecology lead state agency for overall state climate change plan; WCI and TCR coordination; management and tracking of state legislation CTED – state energy policy, land-use lead WSDOT – State VMT reduction plan

8. Washington State: Climate Initiative Resources – Statewide: 3 – policy positions with 2008 budget 1 - dedicated emission inventory (Air Program) 1 – project position for reporting rules and tracking (Air Program) Air Quality Program heavily impacted for support, analysis, policy, implementation

9. Washington State: Climate Initiative Federal Legislation: Suggested Principles A national science-based emission limit that ensures climate stabilization A strong state – federal partnership Strong support for state – based climate action plans and initiatives Incentives for early actions Rewards for state actions Alignment of other federal policies to ensure they don’t conflict with climate goals Concerns Pre-emption Distribution of allowances Use of federal auction revenues

10. Washington State: Climate Initiative Alignment with Other Priorities: Energy generation and use Transportation Air Quality Economy

11. Washington State: Climate Initiative CA Waiver: EPA letter denies waiver: 12/19/2007 CA and others file petition for review in 9 th Circuit Court: 1/02/2008 EPA files motion to dismiss: 2/15/2008 - not final action/should be in DC Circuit Mid February CA files protective appeal in DC Circuit EPA issues federal register notice: 2/29/2008 – claiming this is final waiver decision Auto makers file motion to dismiss: 3/18/2008 - states filed too early and not in DC Circuit Court States filed response to EPA: 3/3/2008; to auto makers: 3/28/2008 Merits briefing likely extended until after courts decision on motions to dismiss