1. Climate Change Legislation Intelligent Transport Society of America May 4, 2010 Annual Meeting and Exposition Houston, Texas Climate Change Legislation Intelligent Transport Society of America May 4, 2010 Annual Meeting and Exposition Houston, Texas Tom Richichi 202-789-6026 trichichi@bdlaw.com

2. Our Future?

3. Recent Legislative Developments 1.Kerry-Graham-Lieberman May/June ? 2.Cantwell-Collins (“The CLEAR Act”) 3.Boxer- Kerry (Cap & Trade)

4. Graphic Representation of Legislation

5. Kerry-[Graham]-Lieberman 1.800 pages embargoed 2.Outline sent to EPA for review – 6 weeks 3.Debate in June Following Memorial Day Recess? 4.Streamlined Approach from Prior Bills 5.Cap and Trade Becomes Reduce and Refund 6.Energy Policy/Job Creation Focus

6. K [G] L - continued 6.Caps on Power Plant CO2 Emissions (2012) 7.Separate caps for other sectors 8.Staggered deadline for manufacturing emissions limits (2016) 9.Allowance auction revenues back to consumers and industries 10.Pricing of carbon – carbon tax (linked fee) on transportation fuels tied to market [?] 11.Add-ons to attract moderate Democratic/Republican support

7. Potential Add-ons to Bipartisan Climate Bill Preemption of state regulation Tax breaks/financial assistance to manufacturers Mitigation measures  Phase-ins  Price collars (between $10 and $28)  Offsets (permanence and flexibility mechanisms?)  Emissions allowance distribution  Reasonable targets/timetables Electric vehicle incentives National renewable energy standards

8. Potential Additions to Bipartisan Climate Bill (April 15 Letter From Democratic Senators) Allowance rebates to energy intensive industries Border measures (WTO issues) Expanded nuclear power Offshore drilling (revenue dedication/Gulf spill?) Expanded domestic oil and gas exploration Diminished role for EPA Developing country commitments

10. GHG Activities Generally Regulations EPA’s actions the result of Mass v. EPA (2007) States Seven state AG’s (CA, MA, DE, ME, MD, RI, VT) asked Congress to not preempt state level progress

11. Key Clean Air Act Climate Change Rulemakings Final California GHG Waiver (7/8/09) Final Mandatory GHG Reporting Rule (9/22/09) ----------------------------------------------------- Final Endangerment and Cause or Contribute Finding (12/15/09) ----------------------------------------------------- Final Reconsideration of a Guidance Memorandum Issued by Former EPA Administrator Stephen Johnson (the “Johnson Memo”) ( 75 Fed. Reg. 17004, April 2, 2010 ) Final Light Duty Vehicle GHG Standards (Issued 4/1/10) Proposed PSD/Title V Tailoring Rule