1. Brief revisions, CRC plans revisions Overview of referencing in plans % grading scheme for CRC final projects prove feasibility in plans

2. Australia’s Carbon Pricing Nov 8, 2011: Australian Senate passes “Clean Energy Future” July 1, 2012: implemented Covers emitters >25,000 tonnes (N=300); 50% of Australia’s emissions Carbon price fixed at $23/ton for 2012-2015 interval; unlimited number, price increases by 2.5% per year Becomes cap-and-trade program in 2015-2018; with price floor and ceiling, and fixed # of permits Elements: - goal is to reduce GHG emissions by 80% under 2000 levels by 2050 ->50% of revenue generated returned to (low-income) households (taxless bar raised from $6,000 to $18,000 income) -other revenue used to cushion “trade-exposed” industries and workers, boost renewable power, efficiency, and low-C energy -projected to cost $4billion in first 4yrs (not counting revenue) -agriculture, gasoline largely exempt (or levied through separate taxes) -3 new government branches created

3. The Clean Future Energy Plan creates: New programs/institutions: 1)Clean Energy Finance Corporation  $10billion to invest in renewable energy, low-polluting, and efficient technologies. Government loans 2)Australian Renewable Energy Agency  coordinate $3.2billion in existing grant funding programs 3)Clean Technology Program  improve efficiency in manufacturing, support industry R&D Government institutions: 1)Clean Energy Regulator  administers carbon pricing program 2)Climate Change Authority  advising on emissions caps, reviewing carbon pricing, renewable targets, etc 3)Energy Security Council  advise gov’t of systematic risks to industry, advise on provision of loans to coal-fired power generators

4. Will Labor Party lose in 2013 elections? and give Liberal-Nationals chance to repeal the CEF plan? So, how’s it going down under? Virgin Australia added $2-6 surcharge to every flight. Emissions down 8.6% in first six months! -more wind and hydropower, less coal Unprecedented drop in emissions, as tracked for 120yrs. Food for thought? What does it mean that Australia’s $23/ton is more than double the price of carbon in the EU? Does it matter? Australia suffered a severe decade-long drought that ended in 2010. Back then, 73% of population concerned about climate change. Now, 53% of population is concerned. http://www.theaustralian.com.au/national-affairs/climate/

5. National Energy/Climate Bills How does the legislative process work? What bills have been considered? What are the pros and cons of each? Who stands to win and who stands to lose?

6. The legislative process: how does a bill become law? Step 1: Bill is introduced by sponsor (and co-sponsors) assigned a # (S.#### for Senate bills and H.R.#### for House bills), printed and posted on web  http://www.govtrack.us Step 2: Committee consideration referred to one or more House or Senate committees; must receive a majority vote from committee members in order to move to the floor for a full vote Step 3: Subcommittee consideration some bills sent to special subcommittee for further study or public hearings; subcommittee may “mark up” bill by adding amendments and making changes; must receive a majority vote to send back to committee or it dies Step 4: Bill “reported” by committee; published

7. Step 5: Floor action – legislative calendar bill scheduled for debate, or “floor action”; majority party decides order Step 6: Debate House members typically limited to 1-5 minutes each, if at all Senators have unlimited speaking time  opponents can filibuster until either a) back-door agreement reached b) 60 senators move to end debate and call a vote Step 7: Voting either electronic or verbal Step 8: Bill referred to other chamber other chamber can approve, reject, amend, or ignore the bill Step 9: Conference committee  towards “reconciliation” members from House and Senate work to compromise on differences in passed bills; changes must be approved by House and Senate, else bill dies Step 10: Signature by President if President vetoes bill, 66% of House and Senate members needed to override

8. HOUSE H.R. 2454: American Clean Energy and Security ActPassed 6/25/09 Waxman, D-CA; Markey, D-MA219 to 212 SENATE S. 1462: American Clean Energy Leadership Act Passed Comm. Bingaman, D-NM (chairman) S. 1733: Clean Energy Jobs and American Power Act Passed Comm. Kerry, D-MA; Boxer, D-CA; Cardin, D-MD; Kirk, D-MA; 9/30/09 S. ????: Kerry, D-MA; Graham, R-SC; Lieberman, I-CT working to introduce comprehensive climate/energy bill that will muster 60 votes needed to block predictable Republican filibuster Bill NameStatus

9. H.R. 2454: American Clean Energy and Security Act Key Provisions: 1)Clean Energy -renewable electricity/efficiency standard, CCS, new rules for new coal plants, R&D for electric vehicles, $ for smart grid 2)Energy Efficiency - building, lighting, appliance, and vehicle efficiency programs 3)Cap and Trade Program 4)Transitioning to a Clean Energy Economy -preserve domestic competitiveness, support workers and consumers, support for domestic and international adaptation measures 5)Agriculture and Forestry-related offsets (tied to #3)

10. Waxman-Markey Cap & Trade Covers 1) stationary sources emitting >25,000 tons of GHG/yr 2) oil refineries 3) importers of petroleum 4) natural gas distributors 5) “F-gas” producers (CFCs, HCFCs, HFCs etc) [separate cap] Targets -3% of 2005 by 2012, -17% by 2020; -83% by 2050 Distribution of Allowances 20% allowances auctioned at first, 70% by 2030; funds to go to 1) protecting consumer (esp. low income) from rising electricity and gas prices 2) fund technological advances

11. Where does the money from allowances go to? electricity consumers for price protection consumers as energy dividend low income consumers E-intensive, trade-vulnerable industry big coal nat’l gas consumers

12. Waxman-Markey Cap & Trade (cont.) Offsets - allows 2 billion tons of offsets system-wide (1 billion domestic; 1 billion international); President can recommend increase or decrease -creates “Offsets Integrity Advisory Board” to oversee and qualify offsets - involves domestic offset program using agriculture and forestry Costs to Consumers - Congressional Budget Office cost of $175/yr/household on average net benefit of $41/yr/household for low-income - EPA estimates cost of $80-111/yr/household Carbon Market Oversight Federal Energy Regulatory Commission; Commodity Futures Trading Commission; no over-the-counter trading of derivatives Interaction with State and Regional Cap-and-Trade Programs State programs put on hold 2012-2017 Existing state CO2 allowances can be traded in for federal allowances

13. Waxman-Markey on Coal Focuses on CCS (Carbon Capture and Storage) -creates Carbon Storage Research Corporation ($1 billion/yr for 10 years funded from small tax on electricity rates); oversee 5 large commercial CCS operations -for 10 years, gives bonus allowances to companies that do CCS (equivalent to $100/ton of CO2); second 10 years bonus allowances are auctioned

14. ACES gives $250 billion in CCS incentives by 2050!

15. Waxman-Markey on Nuclear and low-C Energy Creates sustained federal funding for low-C energy -creates Clean Energy Deployment Administration (initially funded by $7.5 billion in “green bonds” granted by US Treasury); 20yr charter; oversee distribution of allowances granted to clean energy projects Removes regulatory and financing hurdles for nuclear -places sole responsibility for nuclear permitting and financing in the DOE; heavy oversight by Energy Secretary; $19 billion available in financing right now

16. Electricity generating capacity by 2050 in BAU and with ACES

17. February 14, 2013 Climate Protection Act introduced by Sen. Sanders (D-VT) and Sen. Boxer (D-CA) proposes $20/ton price on carbon Sustainable Energy Act introduced by same folks proposes to eliminate fossil fuel subsidies ($72 billion from 2002-2008; vs $12.2 billion for renewables) February 17, 2013: 40,000 rally in DC to support clean energy  Keystone pipeline, anti-fracking What’s happening now

18. Keystone Pipeline Fact Sheet proponents say “wouldn’t you rather get your oil from Canada than Saudi Arabia and Venezuela?” fact: 2.4billion barrels imported daily; 700,000 barrels from Canada. opponents say “we’re investing $ and inertia into a CO 2 -intensive future” It’s Obama’s call.

19. Climate Change and Energy An EPA Priority – Reducing greenhouse gases (GHG) is a top priority for former Administrator Lisa Jackson Some key actions taken: – Endangerment Finding – Mandatory Reporting – Renewable Fuels Standard – Light-Duty Vehicle GHG Emissions Standards and CAFE Standards – GHG permitting requirements on large industrial facilities (Tailoring Rule) – Carbon Capture & Sequestration – A variety of voluntary and other initiatives DRAFT PRESENTATION Remaining slides from Dr. Ken Mitchell, EPA 2010

20. Endangerment Finding Endangerment Finding: Current and projected concentrations of the six key well- mixed GHGs in the atmosphere threaten the public health and welfare of current and future generations Cause or Contribute Finding: The combined emissions of these well-mixed GHGs from new motor vehicles and new motor vehicle engines contribute to the greenhouse gas pollution which threatens public health and welfare Final Rule published in Federal Register December 15, 2009 Greenhouse Gases (GHGs) Carbon Dioxide (CO 2 ) Methane (CH 4 ) Nitrous Oxide (N 2 O) Hydrofluorocarbons (HFC) Perfluorocarbons (PFC) Sulfur Hexafluoride (SF 6 )

21. GHG Reporting Rule * We delayed inclusion of certain source categories as we consider comments and options Upstream Sources  Suppliers of Coal-based Liquid Fuels  Suppliers of Petroleum Products  Suppliers of Natural Gas and Natural Gas Liquids  Suppliers of Industrial GHGs  Suppliers of Carbon Dioxide (CO2) Downstream Sources  General Stationary Fuel Combustion Sources  Electricity Generation  Adipic Acid Production  Aluminum Production  Ammonia Manufacturing  Cement Production  Ferroalloy Production  Glass Production  HCFC-22 Production and HFC-23 Destruction  Hydrogen Production  Iron and Steel Production  Lead Production Mobile Sources Vehicles and engines outside of the light-duty sector (light-duty in NPRM to Establish Light-Duty Vehicle Greenhouse Gas Emission Standards and Corporate Fuel Economy Standards) Covered GHGs Carbon Dioxide (CO 2 ) Methane (CH 4 ) Nitrous Oxide (N 2 O) Hydrofluorocarbons (HFC) Perfluorocarbons (PFC) Sulfur Hexafluoride (SF 6 ) Nitrogen Trifluoride (NF 3 ) Hydrofluorinated Ethers (HFE) Expressed in metric tons of carbon dioxide equivalent (mtCO2e) First report for CY10 Final Rule Published in Federal Register on October 30, 2009

22. Renewable Fuels Standard (RFS2) Revision to current RFS (RFS1) as required by the Energy Independence and Security Act (EISA) Significant increase in renewable fuels to displace petroleum consumption (36 billion gallons by 2022) CO 2 Lifecycle analysis Final Rule Signed 2/3/2010 Lifecycle GHG Thresholds Specified in EISA (percent reduction from 2005 baseline) Renewable fuel a 20% Advanced biofuel50% Biomass-based diesel 50% Cellulosic biofuel 60% a The 20% criterion generally applies to renewable fuel from new facilities that commenced construction after December 19, 2007.

23. Mobile Source GHG/CAFE Proposed Rule First national GHG emissions standards under the Clean Air Act Satisfies requirements under both Federal programs and the standards of California and other states Applies to passenger cars, light-duty trucks, and medium-duty passenger vehicles, covering model years 2012 through 2016 Meet an estimated combined average emissions level of 250 g CO2 per mile in model year 2016, equivalent to 35.5 mpg if the automotive industry were to meet this CO2 level all through fuel economy improvements Now Obama mandated 54.5 mpg by 2025 (August 28, 2012)

24. Proposed Tailoring Rule Focused on large facilities emitting over 25,000 tons of CO2e/year Facilities required to obtain construction permits that would demonstrate they are using the best practices and technologies to minimize GHG emissions The rule proposes new thresholds for greenhouse gas emissions (GHG) that define when Clean Air Act (CAA) permits under the New Source Review (NSR) and title V operating permits programs would be required for new or existing industrial facilities. Would cover nearly 70 percent of the national GHG emissions that come from stationary sources, including those from the nation ’ s largest emitters—including power plants, refineries, and cement production facilities. Small farms, restaurants and many other types of small facilities would not be subject to these permitting programs Proposal in Federal Register on 10/27/09