Doug Scott, Director Rod R. Blagojevich, Governor Illinois Environmental Protection Agency Governor ’ s Global Warming Initiative Illinois Environmental Protection Agency Ron Burke, Associate Director

 Adopted rules to significantly reduce power plant emissions beyond federal requirements; three units will close, reducing CO million tons/year  2006 law limits diesel idling in air quality non- attainment areas  Introduced Open Road tolling on Illinois Tollway System  Illinois Conservation and Climate Initiative creates forestry and agriculture carbon offsets  Co-founded The Climate Registry

 Incentives and programs have made IL #1 consumer of biodiesel with 2 nd most number of E-85 pumps  Energy Biosciences Institute at UIUC and Cal-Berkely; $500 million grant from BP  IL awarded FutureGen project  2 utility-scale winds farms operational; 15 proposed  Adopted new energy efficiency building codes for state and commercial buildings  New law expands net metering for distributed renewable electric generation  2007 Illinois Power Agency Act creates significant renewable energy and energy efficiency requirements for utilities.

 Illinois 2 nd state to join Chicago Climate Exchange  Committed to power state facilities in Springfield with wind energy  Buying mostly flex fuel and hybrid vehicles  Reduce building energy use at least 10% in 10 years  State buildings to install Energy Star lights  New k-12 schools to achieve LEED Silver certification  Most new buildings funded by CDB constructed to meet LEED standards

5 Illinois Climate Change Advisory Group  Created by Governor’s Executive Order  Advise Governor on how to meet his GHG reduction targets: ◦ 1990 levels by 2020 ◦ 60% below 1990 levels by 2050  Reductions of this magnitude needed to avoid significant consequences  40 members + dozens of observers

6 ICCAG Background  World Resources Institute: technical and facilitation assistance  ICF International: emissions and economic impact modeling  First meeting February 2007  More than 80 policy options considered; final recommendations made in Sept  24 policies recommended; 19 unanimous

7 Illinois GHG Emissions

8 Final Recommendations to the Governor: Transportation  Implement smart growth initiatives and expansion of mass transit  GHG emission standards for automobiles (California standards)  Incentives for fuel efficient vehicles  Low-carbon fuels standard; based on California proposal  Fuel efficiency and/or low carbon fuel requirements for all government vehicles  Passenger and freight rail upgrades

9 Final Recommendations to the Governor: Power/Energy  CO2 emission performance standards for electricity generation or procurement (new generation only)  Small renewable distributed generation: rules, legislation, incentives  Energy efficiency standards for appliances and equipment  Establish residential and commercial energy efficiency construction codes beyond international standards, including government buildings.

10 Final Recommendations to the Governor: Power/Energy  Phase-in of energy efficiency standards for light bulbs  Energy conservation and efficiency programs for existing state facilities  Enhanced renewable portfolio standard of 25% by 2025  Enhanced energy efficiency: 2% demand reduction by No revenue cap.  Carbon capture & storage (from the outset) portfolio standard of 5%. Utilities must buy if available.

11 Final Recommendations to the Governor: cap and trade  Cap-and-trade program for power generators and relatively large industrial sources; preference to link with other states  20% carbon offset requirements for new fossil fuel generation

12 Final Recommendations to the Governor: Commercial, Industrial and Agriculture  Programs to encourage forest management, reforestation, tree- and grass-planting  Expand use of no-till farming  Encourage or require reductions in emissions of high GWP gases (N 2 O, HFCs, PFCs, SF 6 )  Energy efficiency incentives and standards for commercial/industrial generators/boilers

13 Final Recommendations to the Governor: Commercial, Industrial and Agriculture  Encourage methane capture from coal mines, landfills, livestock farms and wastewater treatment plants  Increase traditional recycling diversion rate with municipal goals and by stimulating demand for recycled materials  Land use development offset requirement

Electricity Savings (million kWh)

8,080,000 8,100,000 8,120,000 8,140,000 8,160,000 8,180,000 8,200,000 8,220,000 Reference CaseAll In Except Cap & Trade (#1)All In With Cap & Trade (#2)All In w/C&T &RGGI Link (#3) Jobs Does not meet GHG Reduction Goal Assumes no action taken to address climate change Does meet GHG reduction goal Does meet GHG reduction goal Does not meet GHG Reduction Goal

Reference CaseAll In Except Cap & Trade (#1)All In With Cap & Trade (#2)All In w/C&T &RGGI Link (#3) Gross State Product (Billions Fixed 2000$) Assumes no action taken to address climate change Does not meet GHG Reduction Goal Does meet GHG reduction goal Does meet GHG reduction goal Does meet GHG reduction goal

 Governors of Illinois, Iowa, Wisconsin, Minnesota, Michigan, and Kansas  Agreed to set regional GHG reduction goals and to develop a "cap & trade" program to achieve these goals  Within the next year, governors will establish regional targets and complete development of a model rule for a cap & trade system

 Increase the number of stations offering 85% ethanol fuel (E85) to 15% of total stations in Midwest) by 2015 increasing to 9,700 stations (25%) by 2025  Generate at least 10% of electricity consumed in the Midwest from renewable energy sources by 2015, increasing to 30% by 2030  Meet at least 2% of Midwestern electricity and natural gas needs through use of energy-saving technologies by 2015  Capture and store carbon dioxide from all new power plants by 2020  Complete plans for a multi-state pipeline to transport carbon dioxide from coal gasification plants for enhanced oil recovery

For Additional Information  My contact info: Ron Burke Associate Director Illinois Environmental Protection Agency  Program info: