Governor Rod R. Blagojevich Climate Change Advisory Group Illinois Policy Options: Review and Survey Results Meeting of the Illinois Climate Change Advisory Group 130 West Mason Street, Springfield, IL April 3, 2007 Governor Rod R. Blagojevich Climate Change Advisory Group

Policy Options Selection Process 77 options (excluding IL Energy Plan) Added categories and quantitative information (when available) Included policy descriptions and rationale for suggested priority rankings Distributed survey to members for selection of Top 30 preferred policy recommendations

Governor Rod R. Blagojevich Climate Change Advisory Group Survey Results: Top Tier Policy Options RankPolicy OptionVotes Affected Sector(s)RankPolicy Option Votes Affected Sector(s) 1 8. Energy efficiency standards for appliances and equipment30Elec State-level cap-and-trade (including options to join RGGI or other systems) 18Multi Develop and finance ''smart growth'' initiatives and expand/improve alternative modes of transport27Trans Energy efficiency building codes/standards for government buildings 17Gov Renewable fuels standard (RFS) and/or low- carbon fuels standard27Trans Incentives for CHP and boiler construction and upgrades 17Multi 4 5. Carbon performance standards for electricity generation and/or procurement25Elect Incentives to reduce nitrogen application in crop fertilization 16Ag GHG emission standards for automobiles25Trans Encourage or require reductions in emissions of high GWP gases (N2O, HFCs, PFCs, SF6) 16C – I Establish residential and commercial energy efficiency construction codes beyond international standards24Multi Require utilities to factor CO2 into procurement and planning 16Elec Incentives for fuel efficient vehicles23Trans Carbon offset requirements for existing and/or new large stationary combustion sources 16Multi Expand transmission capacity for wind power23Elec Expand use of no-till farming 15Ag Energy efficiency incentives, assistance and/or standards for commercial/industrial generators and boilers22C – I Fuel efficiency and/or low carbon fuel requirements for all government vehicles 15Trans Encourage or require capture of methane from landfills, wastewater treatment plants, and/or coal mines22Waste2369. High-speed rail upgrades 15Trans Programs to encourage forest management, reforestation, tree- and grass-planting21Ag. – For IGCC using carbon capture and storage (from the outset) portfolio standard 15Elec Distributed generation regulatory reform (real- time pricing, net metering, interconnection, standby rates)20Elec Phase in a ban on sale of incandescent light bulbs in certain sectors 15 Multi- sector Energy conservation and efficiency programs for existing state facilities19Gov.

Governor Rod R. Blagojevich Climate Change Advisory Group Additional Policy Suggestions Summary Augmentation of IL Energy Plan options –EEPS; RPS; Biofuel incentives and R&D –Residential building code; energy efficiency incentives for businesses Energy –Policies, incentives, research to promote CCS and clean coal technologies –Incentives for small- & large-scale wind/solar Transportation –Improved mass transit –Auto fuel efficiency standards; incentives for electric/plug-in hybrid vehicles –Reduce diesel emissions –New vehicle license and renewal fee based on CO 2 emissions

Governor Rod R. Blagojevich Climate Change Advisory Group Key policy components to consider Affected sectors/sub-sectors/entities Related/complimenting policies and programs Time-tables and policy duration Stringency Implementation mechanisms Barriers to implementation Interstate cooperation

Governor Rod R. Blagojevich Climate Change Advisory Group Next steps: Assign policies to subgroups Policies go to subgroups for further consideration Primarily assigned by relevant sector Subgroups report back to CCAG on progress

Governor Rod R. Blagojevich Climate Change Advisory Group Discussion Questions and Comments