c2es.org

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-2011 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

and then there were two: 1)Western Climate Initiative (CA, BC, Quebec) -15% of 2005 by cap and trade programs linked

2) Regional Greenhouse Gas Initiative (RGGI) CT, DE, ME, MD, MA, NH, NY, RI, VT current cap: 91 million short tons CO 2 /yr

RGGI emissions by source

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 2018 REVISED 2012: -40% by 2014, and -50% by “cap & trade” mechanism: RGGI states will set GHG cap and then auction permits equal to the tons of CO2 allowed by the cap - auctions are quarterly (next one March 11 th, 2015)

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

Basic elements of Model Rule: (cont.) 6) emissions monitoring: CO2 unit must install and certify monitoring system, report quality-controlled data (borrows from EPA acid rain program) 7) 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 be “real, additional, verifiable, enforceable, and permanent.” - -includes SF6 emissions, trees, building HVAC efficiency (nat gas, oil, propane), landfill methane capture 8) price triggers: stage 1: if CO2 allowance cost >$4, CO2 offsets can increase stage 2: if CO2 allowance cost >$10, CO2 offsets increase more, compliance period extended, international CO2 credits allowed

Carbon Allowance Reserve (as of 2014)

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

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

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. Where did all this money go?

Investment-Report_ES.pdf

Has RGGI reduced emissions? [does it matter?] matters-most-in-cap-and-trade-markets/

no big difference between RGGI and non-RGGI states, so far matters-most-in-cap-and-trade-markets/

fuel switching (coal to natural gas) reduced CO 2 emissions

new cap will challenge RGGI’s effectiveness matters-most-in-cap-and-trade-markets/

source: rggi.org a different perspective

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