2/27/ % below 2005 by 2020 cap and trade 11/15/2007 set emissions targets by 11/15/08 ~60-80% cuts by ???? (2040?) cap and trade; C inventory, reporting full implementation by mid Regional Climate Alliances Spring 2008

Nov 15, 2007, in devt Dec 20, 2005, eff. 1/1/09 Feb 26, 2007, eff. 1/1/12 (goal = -15% of 2005 levels by 2020) June 25, 2008, not eff. yet Regional Climate Alliances Spring 2010

Transportation Climate Initiative (2010 declaration from 11 states) Regional Climate Alliances Spring 2012

X X X X XX * now only CA and Canadian provinces Regional Climate Alliances Spring 2013 * no action since 2010

Regional Greenhouse Gas Initiative (RGGI) -set regional limits on GHG emissions from electric power plants & transportation -based on “Model Rule”, but each state can design their own strategy for implementation (state targets set for 2009 emissions) -came into force in power plant emissions remain constant through 2014, fall by 10% by “cap & trade” mechanism: each state will set GHG limits and then issue permits equal to the tons of CO2 allowed by the cap

Basic elements of Model Rule: 1) applicability: applies to fossil fuel-fired electric generating units >25MW (covers 25% of regional GHG emissions) 2) size & structure of cap: a) states must stabilize power sector CO2 emissions at 2009 emissions during implementation ( ) b) then reduce emissions by 2.5%/yr for (total reductions of 10% below 2009 levels by 2018) 3) permitting: each CO2 source must have approved CO2 budget emission monitoring plan (EMP); developed by state energy regulators 4) allowance allocation: most CO2 allowances auctioned off (vs. ETS) 25% allowances to support consumer benefit programs 5) temporal flexibility mechanisms: facilities can “bank” or “rollover” CO2 allowances early reduction allowances granted for early demonstrated reductions extended compliance period 6) price triggers: stage 1: if CO2 allowance cost >$7, CO2 offsets can increase stage 2: if CO2 allowance cost >$10, CO2 offsets increase more, compliance period extended, international CO2 credits allowed

Basic elements of Model Rule: (cont) 7) emissions monitoring: CO2 unit must install and certify monitoring system, report quality-controlled data (borrows from EPA acid rain program) 8) offsets: awards CO2 offset allowances to projects outside capped sector that sequester/reduce CO2 emissions (limited to 3.3% of unit’s total compliance obligation) - must prove “additionality” Who stands to gain here? Who stands to lose? Or is it that simple? What would you do as a power company in a RGGI state? What is leakage? and how does it impact RGGI?

LEAKAGE - a shift of electricity generation from capped sources subject to RGGI to higher-emitting sources not subject to RGGI. -impossible to predict ahead of time (market and political forces unknown) -RGGI proposes to: 1) track load vs. generation 2) monitor C-intensive nature of non-RGGI power policy options: 1) reduce electricity demand (efficiency), so indirectly reduce leakage 2) limit the amount of CO2 (<xx lbs CO2/MWh) that could be “emitted” through long-term purchasing agreements between RGGI utilities and regional power plants 3) emissions portfolio standard

How did the states dole out allowances? -different than ETS, most allowances auctioned off; -last auction in December, 2012: 100% of allowances auctioned off

Across three past CO 2 allowance auctions, cost ~$1.93/ton How much money did they make?

Where did all this money go? How much did it cost the average customer? Distributing the CO 2 allowance costs around the ratepayers in those States, RGGI costs added $0.43/month to the average electric utility bill.

Has RGGI reduced emissions? [does it matter?]

source: rggi.org

Improvements Feb will cut 2014 allowance by 45%, decrease by 2.5% thereafter (goal is to reduce emissions by 45% below 2005 levels by 2020) -cost containment = $4/ton in 2014, $6 in 2015, up to $10 in 2017 (estimate additional $2.2billion in funds for reinvestment) -new forestry offset protocol -better tools to address “leakage”

Categories of State GHG activities 1)Vehicle Emissions Standards 2)Renewable Portfolio Standards 3)Efficiency Standards/Programs 4)Cap and Trade programs Most content in the following section from Center for Climate and Energy Solutions (c2es.org)

Vehicle Greenhouse Gas Emissions Standards – California leads the way 2002: CA passes law requiring 30% emissions reductions by : EPA stalls on granting CA waiver to step outside federal emissions standards in response to industry complaints 2007: CA files lawsuit against EPA for stalling 2009: EPA grants CA waiver to set standards *if* changes to 2016 timelines to be consistent with Obama CAFE standards

Federal Corporate Average Fuel Economy (CAFÉ) standards CAFÉ standards current: 35.5 by future?: 54.5 by 2025

Plug-in electric vehicles

Biofuels

Low-carbon Fuel Standard: a lifecycle analysis of trans. fuel sources Ex from California: fuel providers must reduce C intensity of fuel mix 10% by 2020

Renewable Portfolio Standards Ranges from: CA: 33% by 2020 TX: 5% by 2015 NY: 30% by 2015 CO: 30% by 2020 NC: 12.5% by 2021

Financial Incentives for CCS

Energy Efficiency Standards and Targets

Hydraulic Fracturing Chemical Disclosure Map

through electricity bills and/or utility charges allows costumers to sell electricity back to grid Public benefit fundsNet metering programs Green Pricing GaPower optional: $5/100kwhr; green power w/ 50% solar; ~$50/month additional cost

Appliance Efficiency Standards

Residential Building Energy Codes

Commercial Building Energy Codes

State Building Efficiency Requirements