1. Carbon Considerations for Infrastructure Projects Laura Farris EPA Region 8 Climate Change Coordinator February 19, 2010

2. Table of Contents Recent EPA Actions Next Steps State and Local Considerations Carbon Reduction Strategies Adaptation Strategies Other Opportunities to Demonstrate Leadership

3. Recent EPA Actions Carbon Capture and Storage Rule Advanced Notice of Proposed Rulemaking GHG Reporting Rule Endangerment Finding Renewable Fuel Standard #2 Vehicle GHG Emissions Standards GHG Tailoring Rule

4. Recent EPA Actions EPA ActionPublished in Federal Register End to Public Comment Period Status Proposed Carbon Capture and Storage Rule July 25, 2008November 24, 2008EPA Review Advanced Notice of Proposed Rulemaking July 30, 2008November 28, 2008EPA Review Proposed GHG Reporting Rule April 10, 2009June 9, 2009Final Proposed Endangerment Finding April 24, 2009June 23, 2009Final Proposed Renewable Fuels Standards #2 May 26, 2009September 25, 2009EPA Review Proposed Carbon Capture and Storage Rule – Supplement August 31, 2009October 15, 2009EPA Review Proposed Vehicle GHG Emissions Standards September 28, 2009November 27, 2009EPA Review Proposed GHG Tailoring Rule October 27, 2009December 28, 2009EPA Review Final GHG Reporting RuleOctober 30, 2009NAFinal on December 29, 2009 Final Endangerment FindingDecember 15, 2009NAFinal on December 15, 2009

5. Carbon Capture and Storage Rule Regulations being developed under the authority of the Safe Drinking Water Act (SDWA) Underground Injection Control (UIC) Program Establishes a new class of wells for CO2 (Class VI) The UIC regulations are designed to help ensure that injected fluids do not endanger underground sources of drinking water EPA’s proposal applies to owners or operators of wells that will be used to inject CO2 into the subsurface for the purpose of long-term storage The proposed rule is the proposed framework for permitting wells, but does not require any facilities to capture and/or sequester CO2

6. Advanced Notice of Proposed Rulemaking - ANPR EPA issued the ANPR to:  Respond to Supreme Court Ruling that GHGs are air pollutants under the Clean Air Act (CAA), as well as 7 petitions to set GHG standards for various mobile source categories  Review EPA’s work to date on potential motor vehicle GHG standards  Examine CAA provisions potentially applicable to GHGs, and the range of potential regulatory approaches and technology opportunities  Provide information on the science of climate change, and seek public comment

7. GHG Reporting Rule In response to the FY2008 Consolidated Appropriations Act Suppliers of fossil fuels or industrial GHGs, manufacturers of vehicles and engines, and facilities that emit 25,000 metric tons or more per year of GHGs (covers ~85 % of national ghg emissions - ~10,000 facilities) Facilities report all information directly to EPA annually starting in March 2011 Will enable EPA to track emissions trends over time, determine response to policies and potential regulations Raise awareness of emissions among reporters and other stakeholders, and contribute to efforts to identify reduction opportunities

8. Endangerment Finding In response to the April 2, 2007, Supreme Court decision in Massachusetts v. EPA, EPA’s Administrator has made a finding that: Six GHGs (CO2, CH4, N2O, HFCs, PFCs, and SF6) endanger public health and welfare: Emissions of CO2, CH4, N2O, and HFCs from new motor vehicles contribute to the atmospheric concentrations of these GHGs

9. Renewable Fuel Standard #2 EPA is developing a new Renewable Fuels Standards (RFS2) per the Energy Independence and Security Act (EISA) of 2007 Directed to revise and implement regulations to ensure that gasoline and diesel sold in the United States contains a minimum volume of renewable fuel RFS2 will increase the volume of renewable fuel required to be blended into gasoline and diesel from 12.95 billion gallons in 2010 to 36 billion gallons by 2022 (increase is mostly cellulostic/advanced biofuels) Sets mandatory lifecycle GHG reduction thresholds for renewable fuel categories, as compared to petroleum fuels used in 2005

10. Vehicle GHG Emissions Standards On May 19, 2009, President Obama announced a national policy to reduce GHG emissions and improve fuel economy for all new cars and trucks, covering model years 2012 through 2016 EPA proposed first ever federal GHG standards for light-duty vehicles using its authority under the Clean Air Act (CAA) - Target: GHG emissions of 250 grams per mile by 2016 National Highway Traffic Safety Administration (NHTSA) proposed related fuel economy standards under the Energy Policy and Conservation Act (EPCA) - Target: fleet-wide average of 34.1 mpg by 2016

11. GHG Tailoring Rule The rule proposes new thresholds for greenhouse gas emissions (GHG) under the Clean Air Act (CAA) New Source Review (NSR) and Title V Operating Permits Programs for new or existing facilities Under Title V, EPA is proposing a major source applicability threshold of 25,000 tpy CO2e for existing facilities (would cover ~70 percent of the national GHG emissions that come from stationary sources) Under the Prevention of Significant Deterioration (PSD) portion of NSR— EPA is proposing a major stationary source threshold of 25,000 tpy CO2e, and a significance level between 10,000 and 25,000 tpy CO2e.

12. Next Steps Analyze BACT options for various source categories: - carbon capture and sequestration systems - improving energy and process efficiency - clean fuel alternatives - control of fugitive emissions - considering alternative BACT options, like offsets Work with permitting authorities and EPA Regional Offices to ensure implementation capabilities

13. Regional, State, and Local Considerations Regional GHG Management Programs: The Regional Greenhouse Gas Initiative (REGGI) - 10 Eastern States have capped CO2 emissions from the power sector, and will require a 10% reduction in CO2 emissions by 2018 Western Climate Initiative (WCI) – 11 Western States and Canadian Provinces are planning a joint strategy to reduce greenhouse gas emissions. The centerpiece of the WCI strategy is a regional cap-and-trade program. If fully implemented in 2015, the program will cover nearly 90 percent of GHG emissions State and Local Climate Action Plans, and related policies, programs, resolutions, and laws

14. Carbon Reduction Strategies Green Building and Construction Practices Use green construction and building practices in the planning, design and construction of infrastructure, buildings, and other projects. For example – Use Energy Star-rated products to reduce energy use. Reuse and/or recycle construction and demolition debris. Reuse industrial materials in construction projects, such as in concrete.

15. Carbon Reduction Strategies Smart Energy Practices Use smart energy practices during project design, construction and operation. For example – Use energy efficient products and practices. Purchase renewable energy from local utilities. Incorporate renewable energy or combined heat and power into project designs.

16. Carbon Reduction Strategies Water Management Practices Use water conservation and green storm water management practices in building and landscape design, site redevelopment planning, and in cleanup strategies. For example – Employ water efficient products and practices in building and landscaping projects, including those that meet EPA’s WaterSense standards. Use “green infrastructure” approaches to managing storm water, for example, permeable pavement and green roofs. Work with water utilities to implement sustainable water infrastructure practices, including full-cost pricing, efficient use of water and energy, and source-water protection. EPA’s Sustainable Water Infrastructure Webpage can be found at: http://www.epa.gov/waterinfrastructure/

17. Carbon Reduction Strategies Diesel Emissions Reduction Strategies Use clean diesel practices for all on-road and off-road vehicles and equipment. For example – Reduce unnecessary idling through the use of auxiliary power units, and strict enforcement of idling limits. Use verified diesel emission control technology ("VDEC"), including verified diesel particulate filters ("DPFs") or diesel oxidation catalysts ("DOCs"). Use cleaner fuels, such as ultra low sulfur diesel (ULDS), biodiesel, liquid petroleum gas, or compressed natural gas. Practice good engine maintenance to meet original standards, and properly train operators to run equipment efficiently. EPA’s “Low Cost Ways to Reduce Emissions from Construction Equipment” can be found at: http://www.epa.gov/ispd/pdf/emission_0307.pdf

18. Other Opportunities to Demonstrate Leadership EPA Voluntary Partnership Programs to Achieve GHG reductions Climate Leaders – Corporate and Small Business Energy Star Green Power Partnership Wastewise

19. Adaptation Strategies Siting/Design Considerations Weather/Climate Analysis Sea Level Rise/Salt Water Intrusion Flood Plains

20. Thank You! Laura Farris EPA Region 8 Climate Change Coordinator 1595 Wynkoop Sreet Denver, CO 80202 303-312-6388