Change picture on Slide Master Impending GHG Emission Reduction Requirements EUCI June 17, 2010 PRESENTED BY Peter Glaser Troutman Sanders LLP 401 9 th.

Slides:



Advertisements
Similar presentations
Getting More for Four Principles for Comprehensive Emissions Trading Jan Mazurek, Director Center for Innovation and the Environment 2002 Environmental.
Advertisements

Copyright Holland & Hart LLP All Rights Reserved. The Deseret Power Case and Implications for CO2 Regulation Under the Clean Air Act Presented by.
EPA’s Clean Power Plan Proposed Rules for Reducing GHG Emissions from Power Plants Presentation to ACPAC June 16,
Change picture on Slide Master Federal Regulatory Developments Affecting Coal: EPA and Congress Montana Coal Council Kalispell, MT July 21, 2009 PRESENTED.
Public Nuisance Claims for Climate Change Impacts: Preemption, Political Question, and Foreign Policy Concerns Prof. Randall S. Abate Florida Coastal School.
Latham & Watkins operates as a limited liability partnership worldwide with affiliated limited liability partnerships conducting the practice in the United.
Climate Change Policy in an Obama Administration Tom Lindley Perkins Coie LLP November 22, 2008.
1 Katy R. Forney Energy Sector Technical Authority Air Permits Section EPA Region 4 PSD and Title V Greenhouse Gas Tailoring Rule 14 th Annual Power Generation.
What options do states have? What is Georgia planning to do? What are some of the other states doing? What are the possible implications to permit fees?
Response to Comments on HAR Amendments Clean Air Branch Greenhouse Gas Rules Stakeholders Meeting 10/18/2013.
1. What Do We Know About Our Energy and Climate Policy? John W. Rowe Chairman and CEO, Exelon Corporation Grand Challenges of the 21 st Century Conference.
EPA Climate Change Regulation Joseph A. Siegel US EPA Region 2 Conference on Carbon Politics and Finance October 29, 2010 Fordham Graduate School of Business.
CMI 9 th Annual Meeting: US Refining Outlook & Climate Policy Implications Jim Keating – BP America, R< February 9 th, 2010.
Clean Air Act Section 111(d) Indiana Energy Association September 11, 2014 Thomas W. Easterly, P.E., BCEE Commissioner IN Department of Environmental Management.
Texas Lignite Industry. Texas Lignite  Because >95% of lignite mining operations in Texas are in support of electric generation…..whatever impacts the.
Change picture on Slide Master New EPA Challenges for Coal-Fired Plants SNL Energy June 10, 2010 PRESENTED BY Peter Glaser Troutman Sanders LLP th.
BEIJING BRUSSELS CHICAGO DALLAS FRANKFURT GENEVA HONG KONG LONDON LOS ANGELES NEW YORK SAN FRANCISCO SHANGHAI SINGAPORE SYDNEY TOKYO WASHINGTON, D.C. The.
The world’s leading sustainability consultancy Generic Front Cover What’s this layout for? This is the generic slide front cover, but you can also make.
GHG Regulations Update AWMA Southern Section September 12, 2012 Biloxi, MS Katy R. Forney Energy Sector Technical Authority EPA – Region 4 Atlanta, Georgia.
Environmental Reform Climate Change Update VCEDA Annual Business Outlook Conference October 15, 2010 Sharon Rubalcava Alston + Bird.
EPA CLIMATE CHANGE ANPR: WHAT IT MEANS FOR STATIONARY SOURCES Peter Glaser U.S. Chamber of Commerce Washington, D.C. October 30, 2008.
American Public Power Association Washington, DC April 27, 2010 Leslie Sue Ritts, RITTS LAW GROUP, PLLC 1.
Change picture on Slide Master Warming in Washington: What’s Up at EPA and in Congress? Western Fuels Association July 30, 2009 PRESENTED BY Peter Glaser.
UPDATE ON NUCLEAR PLANS AND CARBON LEGISLATION 1 Misc points re climate policies -- Energy Security, Benefits to Ag from Legislation, & Impacts on Economy.
Federal Policy Update Presented to Max Williamson June 17, 2010 M-AGG Policy Conference Washington, D.C. 1.
Executive Director’s Report NACAA Fall Membership Meeting September 21, 2009 Bill Becker.
Overview of Carbon Markets and US Federal Proposals to Regulate GHGs American College of Construction Lawyers and Princeton University Joint Symposium.
Change picture on Slide Master EPA Regulation of Greenhouse Gases Industrial Energy Consumers of America November 16, 2009 PRESENTED BY Peter Glaserargaret.
August 4, 2011 Heather Ceron US EPA Region 4 1. Greenhouse Gases 2.
1 Cap and Trade for Regulating Greenhouse Gases Presented by Scott Murtishaw Advisor to President Peevey, CPUC NASUCA Mid-Year Meeting San Francisco June.
Climate Change Legislation Intelligent Transport Society of America May 4, 2010 Annual Meeting and Exposition Houston, Texas Climate Change Legislation.
Cap & Trade. Cap & Trade (Cap) A cap commits a region or country to limits on greenhouse gas emissions (GHG) and then reduces those limits over time.
FEDERAL CLIMATE CHANGE LEGISLATION Overview of Key Provisions of House and Senate Bills for Industrial Energy Users John Clancy Godfrey & Kahn, S.C. 780.
Bill Harnett March 30, 2010 WESTAR Spring Meeting.
John A. Paul RAPCA. Background  Supreme Court Decision  Endangerment Finding  Johnson Memorandum  Light Duty Vehicle GHG Emissions Rule  Tailoring.
Investing in America’s Electric Future Morry Markowitz Group Director, External Affairs New Mexico Utility Shareholders Alliance October 7, 2009.
Andy Engel and Andy Cook The Hamilton Consulting Group Hamilton-consulting.com.
1 Climate Change Regulatory Initiatives M-AGG Workshop (Market Mechanisms for Agricultural Greenhouse Gases) Davis, California June 10, 2010 Nico van Aelstyn.
Federal Climate Change Legislation – Charlotte Chamber September 22, 2009 Mike Stroben Director, EHS Policy.
1. Carbon dioxide (CO 2 ) – Naturally occurring and man- made. 5,505.2 mmts emitted in 2009, GWP = 1 Methane (CH 4 ) - Naturally occurring and man-made.
Change picture on Slide Master The Climate Change Scene in Washington Georgia Traditional Manufacturers Association LaGrange, GA November 5, 2009 PRESENTED.
EPA's Advance Notice of Proposed Climate Change Regulations: Transportation & Energy Update ©2008, Greenberg Traurig, LLP. Attorneys at Law. All rights.
Washington State: Climate Initiative
Greenhouse Gas (GHG) Permit Training Other Aspects of PSD Title V Permitting.
Chicago Climate Exchange ®, Inc. © 2008 Murali Kanakasabai, Ph.D Vice President & Senior Economist Carbon Expo Cologne May, 2008.
June 26, Background of Federal GHG Regulation Supreme Court determines greenhouse gases (GHGs) are “air pollutants” under the Clean Air Act U.S.
Current Federal Action on Climate Patrick Hogan Regional Policy Coordinator Pew Center on Global Climate Change NCEL Forum.
Greenhouse Gas Tailoring Rule aka GHG Permitting Rule.
Update on EPA’s Greenhouse Gas Rulemakings Norman W. Fichthorn Hunton & Williams LLP 2010 American Public Power Association Energy and Air Quality Task.
Sometimes externality problems can’t be solved by private bargaining (transaction costs are too big). Public policy toward externalities. “Command-and-control”
GHG LITIGATION Peter Glaser Climate Challenges in the Sunshine State Orlando, FL February 13, 2008.
Charlotte Chamber U. S. CLIMATE CHANGE LEGISLATION Mike Stroben November 11, 2009.
Greenhouse Gases and the Clean Air Act: An Overview Nathan Richardson June 2010.
1 Anna Marie Wood Acting Director, Air Quality Policy Division Office of Air and Radiation Office of Air Quality Planning and Standards May 2010 Prevention.
Proposed Carbon Pollution Standard For New Power Plants Presented by Kevin Culligan Office of Air Quality Planning And Standards Office of Air and Radiation.
Change picture on Slide Master It’s Not Easy Being Green: What’s Up on Warming in Washington? Virginia Bar Association July 25, 2009 PRESENTED BY Peter.
Intersection of Climate Law, Policy & Science Margaret Claiborne Campbell Troutman Sanders LLP November 16, 2015.
Florida Department of Environmental Protection Greenhouse Gas Update 2010 Jacksonville Environmental Symposium: Green City Gateway to Florida Joseph Kahn.
© 2015 Haynes and Boone, LLP Overview of the EPA Clean Power Plan Suzanne Beaudette Murray February 19, 2016 Tulane Environmental Law Summit.
2010 National Waterways Conference 50 th Anniversary Annual Meeting Issues Updates: Environmental.
Climate: ANPR, SIPs and Section 821 WESTAR October 2, 2008.
Policy Options The basic climate change policy approaches under consideration for the United States are: 1) Cap and Trade: A market based system where.
EPA Regulation of Greenhouse Gases: The View from Washington Troutman Sanders LLP/Trinity Consultants July 20, 2010 PRESENTED BY Peter Glaser Troutman.
U. S. CLIMATE CHANGE LEGISLATION
NSPS Rulemakings for Greenhouse Gas Emissions
GHG REGULATION & LITIGATION Update
Climate Change Legislation & Agriculture
Executive Director’s Report National Association of Clean Air Agencies Fall Membership Meeting & 30th Anniversary Reunion Washington, DC October 18,
Healthy Kansans living in safe and sustainable environments.
Best Available Control Technology for Greenhouse Gas Emissions Sources
Presentation transcript:

Change picture on Slide Master Impending GHG Emission Reduction Requirements EUCI June 17, 2010 PRESENTED BY Peter Glaser Troutman Sanders LLP th Street, NW Suite 1000 Washington, DC

Potential GHG Regulation Congress or EPA or Both?

Kerry-Lieberman Targets and timetables same as Waxman- Markey 4.75% below 2005 levels by % below 2005 levels by % below 2005 levels by % below 2005 levels by 2050 Electric power and refinery sectors covered at start (2013, versus 2012 for W-M); transportation sector through fee set at allowance price; manufacturing in 2016.

K-L Electric Sector Allowances 2013: billion allowances (compared to sector’s allocation of billion in 2012 in W-M) 2013 through 2015: 51% percent of the allowances created for these years (compared to W-M’s allocation of 43.75% for and 38.89% for ) EPA projects allowance prices of $16- $17/mton in 2013 and $23-24 in 2020 (2005 dollars)

K-L Electric Sector Allowance Distribution LDC allocations based on a 75% emissions/25% sales formula (as compared to 50/50 in W-M) Merchant coal generation: 10% of electric sector allowances (same as W-M) Long-term contract generation: 4.3% of electric sector allowances (same as W-M)

K-L Price Collar Allowances sold at ceiling price of $25/ton of CO2 in 2013, escalating at 5%/year plus inflation (W-M: $28 start) Floor price established by sale of allowances from regular auction starting at $12/ton of CO2 in 2013 escalating at 3% a year plus inflation Cost containment reserve of 4 billion allowances (compared to W-M’s 2.5 billion)

K-L Preemption Bill preempts (or at least seems intended to preempt) CAA regulation except for performance standards for coal-fired EGUs permitted after 2008 Plus EPA retains the authority to establish GHG performance standards for the existing fleet (!) Preempts state cap-and-trade programs, but not other state regulation (such as California’s AB 32- Global Warming Solutions Act) No preemption of ESA, tort lawsuits, NEPA, or CWA regulation

K-L Technology Incentives Incentives for nuclear power Incentives for CCS development (similar to Rockefeller-Voinovich CCS bill) Provisions for expanded off-shore drilling and permitting

K-L Offsets Use of up to 2 billion tons/year of offsets allowed Both domestic and international offsets can be used for compliance on a 1:1 basis through 2017 Starting in 2018, 1.25 international offset credits will be needed to constitute an emission allowance. Of the 2 billion tons/year, 1.5 billion tons of offsets must come from domestic sources and 0.5 billion tons from international sources EPA can allow up to 1 billion tons from international sources if it projects that less than 1.5 billion tons will be available from domestic sources at allowance price levels. According to EPA, domestic offsets account for 19% of total GHG abatement, and international offsets account for 18-29% of total GHG abatement

K-L Phase-Down of Coal Generation Incentive allowances to encourage retirement of up to 35 GW of merchant coal generation Coal-Fueled Fleet Transition Program: coal units that agree to retire eligible for tax benefits, exemption from regulation → Neither provision fully developed

Prospects Stand-alone bill seems a long-shot Attach to energy bill? To BP bill? Energy only bill? Utility only bill? One from column A and one from column B? House has already enacted W-M, so if something passes Senate, it can be conferenced with W-M in lame duck session

EPA GHG Regulation Endangerment Finding Litigation Auto Rule Johnson Memorandum Reconsideration Tailoring Rule GHG BACT Guidance NSPS

Endangerment Finding Litigation Finding issued December 7, 2009 Court challenges from Texas, Alabama, Virginia and numerous industry groups 17 states on each side Don’t expect decision in litigation until 2012

Auto GHG Rule Published in Fed. Reg. May 7, 2010 DOT MPG - EPA gCO2/mi. standard According to EPA, makes six GHGs “regulated air pollutants” under the PSD and Title V programs Will subject most of industrial capacity in U.S. to GHG regulation under these programs, yet EPA refuses to do an economic study Lawsuits 60 days after publication in Fed. Reg. Some already filed

Johnson Memo Reconsideration Reconsideration issued 3/2/10 GHGs will be deemed to be regulated beginning 1/2/11 when auto rule “takes effect” Will apply to any PSD permit then in process Phase in per tailoring rule Numerous lawsuits filed, including by enviro organization that will continue argument that GHGs already regulated

Tailoring Rule Published in Fed. Reg. 6/3/10 Phase in of PSD and Title V: - 1/2/11: Sources subject to PSD “anyway” will be required to do GHG BACT if increase emissions by 75,000 tons per year - 7/1/11: New sources above 100,000 tpy and existing sources that increase emissions by 75,000 subject to PSD - EPA will do future rulemaking and future study to determine whether lower emitting sources will be regulated and how, but commits that no source below 50,000 tpy will be regulated for six years Statutory thresholds are 100/250 tpy, so questionable legal validity…but will anyone challenge?

EPA GHG BACT Guidance Technical guidance will begin rolling out later this summer Policy guidance by end of year Stakeholder input, but no commitment to formal notice and comment

NSPS EPA has agreed to promulgate NSPS for coal EGUs that will include GHG standards Commence rulemaking probably next year Will apply to new and modified sources and could also apply eventually to existing-unmodified sources

Will Congress Preempt EPA GHG Regulation? Murkowski Resolution to disapprove Endangerment Finding and cut off EPA GHG regulation defeated last Thursday Rockefeller bill to delay regulation for 2 years Casey-Carper to …?