Update Patrick Cummins September 26, 2006 WESTAR Council Meeting, Boise, ID

Western Governors’ Association WGA represents the Governors of 19 States and 3 U.S. Flag Pacific Islands

WGA Resolution on Regional and National Policies Regarding Global Climate Change Western Governors support local, state, regional, and national programs to reduce anthropogenic greenhouse gases in a manner that:  Is consistent with the findings of scientific research  Will not significantly harm the U.S. economy  Encourages comparable action by major trading partners and key contributors to global emissions

Global Climate Change Resolution Includes support for:  Continued research on global climate change  Carbon sequestration research and implementation  Cost-effective, market-based policies to reduce greenhouse gases  Consideration of state and regional GHG programs if/when a national regime is developed  A voluntary registry to document and track greenhouse gas emissions

Clean and Diversified Energy In 2004, the Governor’s called for the analysis of policy recommendations that would:  Bring 30,000 megawatts of new clean energy online by 2015  Increase energy efficiency 20% by 2020  Meet transmission needs over the next 25 years The Clean and Diversified Energy Advisory Committee (CDEAC) and 8 task forces were formed to develop consensus, incentive based policies to reach these goals  Over 250 diverse stakeholders participated  Report presented to the governors in June 2006  The CDEAC made 51 incentive-based recommendations

Clean and Diversified Energy Report conclusions:  The governors can meet and likely exceed their 2015 and 2020 goals  Achieving these goals will require a combination of state, regional and federal action CDEAC recommendations included:  Demonstrate IGCC projects in Western states at altitude  Encourage federal tax credit extensions on renewables  Reforms in the FERC Open Access Transmission Tariff to allow regional transmission planning expansion  Encourage the elimination of rate pancaking  Implement and update energy efficiency standards on appliances and buildings  Support comprehensive integrated resource planning and procurement rules

States Leading the Way WGA is encouraging others to adopt the recommended policies and is tracking progress toward the governors’ goals  Gov. Owens (CO) – Signed legislation to encourage IGCC within the state; Xcel Energy has since announced plans to build a 350 MW IGCC plant  Gov. Napolitano (AZ) – Issued an executive order on energy efficiency with the aim of reducing GHGs to 2000 levels by 2012  Gov. Huntsman (UT) -- Proposed legislation to set a 20% goal for energy efficiency in Utah by 2015  Govs. Schwarzenegger (CA) and Freudenthal (WY) signed an MOU on developing IGCC with carbon sequestration and renewable energy in Wyoming  Gov. Gregoire (WA) signed legislation that requires state schools and office buildings to be constructed in a manner that will conserve energy and minimize their environmental impact  Gov. Schwarzenegger (CA) signed the Million Solar Roofs Legislation in August 2006

Western Renewable Energy Generation Information System (WREGIS) Formed in 2004 as a joint effort between WGA and the California Energy Commission Will issue, track, and verify regional renewable electricity generation and certificates Scheduled to come online in late 2007

Carbon Sequestration Partnerships WGA is assisting four regional carbon sequestration partnerships  Big Sky  Plains  Southwest  West Coast The partnerships are engaged in validating sequestration technologies, assessing repository potential, and identifying best management practices  The Big Sky Partnership will inject several thousand tons of CO2 into the Grande Ronde Basalt in eastern Washington as a demonstration project  The Plains Partnership will be using 14.4 million tons of CO2 to test terrestrial sequestration in the region’s wetlands

Future Transportation Fuels Initiative Resolution on Transportation Fuels for the Future passed June, 2006  570 million gallons of oil are used each day by the nation’s transportation sector  Regional Task Force will develop a policy roadmap for western alternative fuel development and distribution in the future Governor’s offices are currently gathering ideas for actions to take in the near, mid, and long-term The roadmap will be refined by a broad range of stakeholders Fuels currently being considered include ethanol, bio-diesel, coal-to-liquids, hydrogen, and electricity Many states have already taken the lead  Gov. Sebelius is chairing the Governors’ Ethanol Coalition  Gov. Schweitzer is working to attract companies to Montana that are committed to producing clean burning liquid fuel from coal

Climate Change Impacts on Water In 2006, WGA helped develop and adopted the Western States Water Council Report, “Water Needs and Strategies for a Sustainable Future” The report makes recommendations on  Water policy and growth strategies  Infrastructure needs  Indian water rights and negotiated settlements  Preparations for climate change impacts  Coordination between researchers and policy-makers, particularly on ESA

Mexico Emissions Inventory First national EI for Mexico complete and published Coordinated by WGA (Rich Halvey) with EPA funding EI is for 1999 Next Steps  2004 update  Special studies – mobile sources

Western Regional Air Partnership (WRAP) Voluntary association of 15 states, Western tribes, and federal agencies Assists Western states and tribes in developing regional haze plans for federal Class I Areas:  State regional haze plans due to EPA in December Currently working with 9 member states to develop GHG emission inventories and forecasts  Final products are expected in early 2007  4 states already have developed GHG inventories

Western Regional Air Partnership (WRAP) Participating with other states/regions to evaluate options for a multi-state GHG registry  WRAP and Eastern states are leading the effort  Western and Mid-Western states and tribes participating  Building on California Climate Action Registry: ensure consistency and avoid multiple or different state registries  Goal: Operational by late 2007  Policy neutral system - states and tribes opt-in at their discretion

2018 Base Case Visibility Projections (deciviews) Note: Fire & Dust emissions held constant

WRAP region EGU SO 2 emissions Data Sources: 1995, 1998, and 2005 from EPA Clean Air Markets Division, 2002 emissions and 2018 projections by Eastern Research Group, and 2018 BART assuming presumptive limits in EPA BART rule on units > 200 MW

WRAP region NO x emissions by source category Data Sources: WRAP Forums’ emissions inventories and biogenics from BEIS model

BLM prepares for 13,000 new wells in Piceance Basin

Technical Support System Summary of key technical data to support regional haze planning & implementation – version 1 on-line mid-October 2006 Supports consultation & interstate emissions/visibility tracking Interactive data displays:  Monitoring  Emissions  Modeling/Source Apportionment Results  Ancillary GIS information To assess progress, provides tracking of:  Periodic emissions inventories & emissions reductions programs  Visibility monitoring data  Modeling/Source Apportionment Results Getting Started with the TSS Attribution of Haze Results Regional Haze Planning Support Weight of Evidence Checklist User Defined Queries & Analyses Welcome to the WRAP Technical Support System!