1. Climate Change Advisory Committee March 27, 2009

2. Welcome & Introductions

3. Agenda Action Items: – Approval of Minutes (2/27) Introduction of CCS Staff Subcommittee Reports Public Comment Lunch Draft Impacts Assessment Report Presentation EPA Draft GHG Reporting Rule Outreach Update GHG Inventory & Projections Update

4. Action Item – Approval of Minutes February 27 th – Questions or comments prior to action?

5. Public Outreach Joe Sherrick

6. Staffing Changes CCAC – Pat Lupo resignation – Governor appointment of Laureen Boles – Electricity Subcommittee Chair vacancy DEP – Kim Hoover to assume more coordination responsibilities with CCAC

7. Comment Period on Action Plan Comment Period Begins 10/9/09 Comment Period Closes 11/9/09 Approximately 30 day comment response period followed by internal approval process for publication; concurrent review by CCAC Comment response document available end of 2009 and incorporated as addendum to Action Plan

8. Timeline 2/27 - 4/30Continue to refine and score work plans 5/1 - 6/30 DEP begins drafting action plan 7/1Final work plan recommendations due 7/1 - 7/24 DEP integration of CCAC final recommendations 7/27 - 8/7 OETD & Policy Review (concurrent) 8/10 - 8/14 CCAC Review 8/17 - 8/28 Chief Counsel, OA & Policy Review (concurrent) 8/31 - 9/18 Secretary & Communications Review (concurrent) 9/21 - 10/2 Printing 9/29 Submit PA Bulletin notice to Policy Office 10/9Action Plan delivered to General Assembly, Governor’s Office and available via DEP website

9. Center for Climate Strategies Tom Peterson

10. Center for Climate Strategies Introductions CCS’s Role Projection Coordination

11. Subcommittee Reports Status of Work Plan Review/Refinement Schedule of Upcoming Meetings Questions, Concerns, Other

12. Subcommittee Reports Subcommittee Chairs

13. Subcommittee Reports Electricity Generation, Transmission & Distribution – Wayne Williams, Chair Industry & Waste – Terry Bossert, Chair Residential/Commercial – Vivian Loftness, Chair Land Use/Transportation – Nathan Willcox, Chair Agriculture/Forestry – John Quigley, Chair

14. Public Comment

15. Lunch Lunch is provided for CCAC members only. Thank you.

16. Draft Impacts Assessment Report Dr. James Shortle

17. Baseline & Target Years Critically important for further assessment Global standard/international recommendation to use 1990 as base year Typical baseline years include: – 1990 - difficulties obtaining complete and accurate data – 2000 – good access to high quality data; captures recent actions – 2005 – fails to incorporate recent actions Typical near-term target years include: – 2020 – 2025 – Additional target years, with increasing targets, also identified by many state plans

18. EPA’s Proposed Mandatory Greenhouse Gas Reporting Rule Krish Ramamurthy Chief, Division of Permits Bureau of Air Quality PA. DEP

19. GHG Mandatory Reporting Rule Statutory Authority – FY 2008 Consolidated Appropriations Act – $3.5 million Scope of Coverage – Define gases- “…to require mandatory reporting of greenhouse gas emissions” CO 2, CH 4, N 2 O, HFC, PFC, SF 6 – Both upstream and downstream sources – “The Agency is further directed to include in its rule reporting of emissions resulting from upstream production and downstream sources…” Proposed Rule – Statutory Deadline -Sept. 2008 Final Rule – Statutory Deadline -June 2009

20. Rule - Timelines Proposed rule [40 CFR 86 through 1065 (nonconsecutive)] was signed by the EPA Administrator on March 10, 2009 The proposed rule will be published in the Federal Register (www.regulations.gov) shortly under Docket ID No. EPA-HQ-OAR-2008-0508www.regulations.gov Pre-publication copy can be found on www.epa.gov/climatechange/emissions/ghgrulemaking.html The rule is expected to be finalized by June 2009

21. Public participation Two public hearings- Washington,DC and Sacramento, CA. First public hearing will be held on April 6 and 7, 2009 in the Washington, DC area (One Potomac Yard, 2777 S. Crystal Drive, Arlington, VA 22202) Comments must be received on or before 60 days after date of publication in the Federal Register

22. Greenhouse Gases (GHGs) Carbon Dioxide - CO2 Methane - CH4 Nitrous Oxide - N20 Sulfur Hexaflouride - SF6 Hydrofluorocarbons - HFCs Perfluorocarbons – PFCs Other fluorinated compounds (e.g., NF3 and HFEs

23. Proposed Rule – Overview: Reporters Facilities that emit 25,000 metric tons or more of CO 2 e of GHG emissions per year (Exceptions include fugitive emissions from coal mining) Suppliers of fossil fuels or industrial greenhouse gases Manufacturers of vehicles and engines Emission sources from the agriculture sector would not be covered by the rule, with the exception of livestock operations with GHG emissions from manure management systems

24. Proposed Methodologies Use direct measurement for EGUs in Acid Rain Program (ARP) Facility–specific calculations for other source categories Vehicle/engine manufacturers would use existing certification and test protocols Industrial gas suppliers- direct reporting of gas produced, imported and exported

25. Level of Reporting Generally downstream reporters at the Facility level – Within the facility : Each Source category (facility, process, unit) Upstream Suppliers of fossil fuel and industrial gases and manufacturers of vehicles and engines at the corporate level Annual Mass GHG emissions by gas, as per respective subpart and certain activity data (fuel use, feedstock inputs)

26. Reporting Frequency Report directly to EPA – Annually for new reporters – Quarterly for existing reporters Data collection begins January 1, 2010 with first report submitted to EPA by March 31, 2011

27. Monitoring requirements Direct measurement at facilities that currently required to use CEMS – May require upgrade existing CEMS to monitor CO2 Facilities that do not use CEMs may use facility-specific GHG calculation methods as specified in each subpart (e.g., mass balance, measurement of fuels and raw materials) Supplier source categories – production, import and export data

28. Mobile Sources Vehicle and engine manufacturers- Emissions reported as a rate (e.g. grams/mile) Report annually Small manufacturers may be exempt from reporting Not proposing to require fleet and VMT/travel activity data

29. For more information Preamble and proposed regulatory text available at www.regulations after publication in the Federal Registerwww.regulations Additional information: www.epa.gov/climatechange/emissions/ghgrulemaking.html Hotline: 1-877-GHG-1188 Email: GHGMRR@epa.gov

30. General Questions, Comments or Additional Issues? CCAC Members

31. ADJOURN