Taking the Lead: State Innovations to Reduce Greenhouse Gases Bill Becker STAPPA/ALAPCO February 28, 2002

What I Will Cover Menu of Harmonized Options Model for Assessing Benefits of Harmonized Strategies New International Web Site

STAPPA/ALAPCO Menu of Options for Multi-Pollutant Strategies  Utilities  Transportation  Industrial  Res/Com  Waste  Agriculture  Analyzed Every Economic Sector  Reviewed Market Mechanisms  Modeled Case Studies in Four Areas

Information Included for Each Industrial Sector Greenhouse Gas and Air Pollution Emissions Technology-Based Strategies Policy-Based Strategies Costs and Cost-Effectiveness Experiences and Obstacles Market Penetration

Power Generation Technology Options Combined Heat and Power Gas-Fired Combined Cycle Co-Firing with Biomass and Gas Integrated Gasification Combined Cycle Fluidized-Bed Combustion Fuel Cells Carbon Sensitive Plant Dispatch

Power Generation Strategies: Costs and Emissions Reductions TechnologyCapital Cost ($/kW) Total Costs ($kWh) EfficiencyPercent CO2 Reduction Cost of CO 2 Reductions ($/ton) Percent SO 2 Reduction Percent NO x Reduction Baseline: Older Conventional Coal $ %0000 Combined Heat and Power VariableN/AVariable ($41)-$50Variable Gas-Fired Combined Cycle $500-$ %66%$0-$39>99%99% Co-Firing with Natural Gas (10%) $3-$ %5%($19)-$309-10%30-75% Integrated Gasification/ Combined Cycle $1,500-$2, %29%$33-$191>99%90% Atmospheric Fluidized-Bed Combustion $1,500-$2, %14%$59-$37195%70-90% Pressurized Fluidized-Bed Combustion $1,200-$1, %30%$17-$138>99%70-90% PA Fuel Cell$3,000-$3, %72%$49-$119>99%

Power Generation Policy Options Comparable Emission Standards Output-Based Emission Standards Tax Credits and Subsidies Environmental Disclosure Emissions Portfolio Standards Renewable Portfolio Standards Emissions Trading

Renewable Power Technology Options Hydropower Biomass Combustion Geothermal Systems Wind Turbines Photovoltaics Solar Thermal

Renewable Power Strategies: Costs and Emissions Reductions TechnologyCapital Cost ($/kW) Total Costs ($/kWh) Cost of CO 2 Reductions ($/ton) Percent CO 2 Reduction Percent SO 2 Reduction Percent NO x Reduction Wind950-1, – PV (High Volume)4, Solar Thermal (Parabolic Trough) 2, Biomass1,900-2, Landfill Gas (Fuel Cell) 5, ,090>99 Geothermal (Flash Stream) 1, Hydro at a New Site1,700-2, Hydro at an Existing Dam 900-1, b 100

Renewable Power Policy Options Tax Credits Systems Benefit Charges Air Permitting Exemptions Green Pricing Programs Renewable Portfolio Standards Environmental Disclosure Output-Based Emission Standards

Evaluation of Harmonized Control Strategies Developed “What-If” Scenarios For Four Areas Atlanta, GA Louisville, KY New Hampshire Ventura, CA Areas Selected Power Generation, Transportation,Industrial and Commercial Measures to Reduce CO 2 and Other Air Pollutants

Harmonized Strategy Summary for the Four Case Study Areas Level of Penetration Modeling for Each Area Harmonized Strategies by SectorNew Hampshire Atlanta, GALouisville, KY Ventura County, CA Electric Generation Gas-fired generation converted to gas combined- cycle 0% 100% Fuel switch from oil or coal to natural gas25%20%0% Coal-fired capacity displaced by natural gas combined-cycle capacity 50%30%25%0% Fossil-fuel generation displaced by renewables1% Fossil-fuel generation displaced by fuel cells1%

Percent Reduction from Baseline Emissions in Each Case Study Area AreaSO 2 NO x PMVOCCOCO 2 New Hampshire41%17%12%3%4%12% Atlanta, GA40%6%1%3%4%7% Louisville, KY26%14%3% 4%15% Ventura County, CA 2%4%1%4% 11%

STAPPA/ALAPCO Model For Assessing Benefits Strategic Planning Tool with ICLEI User Friendly Model Assessing and Quantifying Benefits of Strategies Will Expand to Developing Countries Beta Testing Expected Shortly

STAPPA/ALAPCO International Web Site Links Every National, State and Local Air Agency in the World, Including Web Addresses, and More Provides Topical Links on Major Clean Air Issues, Including Climate Change Address: cleanairworld.org