1. NJ GLOBAL CLIMATE CHANGE PROGRAM Leslie McGeorge, Director Division of Science, Research and Technology New Jersey Department of Environmental Protection Presented at: Early Action Conference Pew Center on Global Climate Change Washington, DC September 14, 1999

2. NJ GREENHOUSE GAS INVENTORY & ACTION PLAN Developed by Climate Change Work Group Co-Chairs Stuart Nagourney Department of Environmental Protection Cameron Johnson NJ Board of Public Utilities

3. WHY NJ AND GHGS  NJ - Coastal state. Densely populated, with rich industrial history and high vehicle use.  Historical leader in emerging environmental issues, and sustainability  Many innovative technology businesses to contribute to GHG reductions  Collateral benefits of GHG reductions - environmental (e.g., air quality) and economic  If not us, who? If not now, when?

4. GLOBAL CLIMATE CHANGE AND NJ ENVIRONMENTAL MANAGEMENT SYSTEM  New Jersey - Participant in National Environmental Performance Partnership System (NEPPS) : past 5 years  Global Climate Change - One of 9 major goal areas of comprehensive NEPPS plan  Climate Change Milestone - By 2005, total NJ GHG emissions will be 3.5% below 1990 levels

5. RECENT NJDEP GHG ACTIVITIES  Carbon Banking stakeholder work group  Proposed emissions trading rule which includes CO2  Stakeholder group for action plan development, and coordination of NJ Climate Wise Partnership (1/2000)  DEP Letter of Intent with Netherlands Ministry for the Environment for collaboration on GCC Issues (‘98)

6. OVERVIEW OF THE NJ GHG PROGRAM  Emissions Inventory  Development of GHG Reduction Goal  Action Plan  Implementation

7. Greenhouse Gas Emissions by Source 1990 NJ Estimates; CO 2 Equivalent CH 4 from fossil fuel extraction & distribution CH 4 from landfills CO 2 from land use CO 2 from fossil fuel combustion HCFC-22 & SF 6 Not including emissions of CFCs and related compounds which are under present phase-out requirements HCFC= hydrochlorofluorocarbon SF 6 = sulfur hexafluoride CH 4 = methane

8. Fossil Fuel CO 2 Emissions by Sector New Jersey; 1990 EPA Inventory Methodology 22% Commercial Office Buildings Shopping Malls 38% Transportation Cars Trucks Buses 16% Industrial Manufacturing Processes 24% Residential Home appliances HVAC All operations occurring within NJ borders

10. NJ GHG EMISSIONS REDUCTION GOAL  3.5% below 1990 levels by 2005 - reductions required:  21 million tons of CO 2 equiv.  14% of NJ total emissions  Factors considered in development of milestone  Kyoto Goal  Reasonably achievable with voluntary actions feasible in NJ

11. NJ GHG ACTION PLAN OBJECTIVES  Achieve GHG reduction goal by 2005  Update inventory and emissions data over time  Utilize “no-regrets” reduction strategies:  Practical  Economically viable  Have other positive economic and environmental benefits  Support innovative technology businesses

12. NJ GHG ACTION PLAN COMPONENTS  Reduction strategies  By market sector & strategy categories  Research/Assessment projects  Economic/environmental analysis of GHG reduction options  NJ-specific climate change impacts  Outreach/Education programs  Inform businesses, industry and citizens how they can help

13. STRATEGY CATEGORIES FOR GHG REDUCTIONS  Energy Conservation  Innovative Technologies  Pollution Prevention  Recycling  Natural Resources Mgmt.

14.  Repair Steam Leaks: fix 10%/year; each saves 10% energy and CO 2  Repair Air Compressors: fix 10%/year; each saves 50%  Variable Speed Motors: replace 10%/year; each saves 10% EXAMPLES OF ENERGY CONSERVATION FOR INDUSTRIAL SECTOR

15. METHOD TO CALCULATE GHG REDUCTIONS  Factors used to calculate GHG reductions  Statewide amount of GHGs attributable to each strategy  Fraction of statewide inventory this item represents  Project over 6 years (years 1999- 2005) to get total reductions

16. NJ GHG REDUCTION SUMMARY CategorymmtonsmmtonsSavingsin 2005 w/ no actionaction plan Residential 25.8 24.3 1.3 Buildings Commercial 26.7 18.5 8.2 Buildings Industrial 31.0 27.5 3.5 Transportation 46.2 44.0 2.2 Waste Mgmt. 19.8 15.3 4.5 Natural Resources 1.7 1.2 0.5 Total 151.2 130.8 20.4

17. PROJECTIONS vs. SAVINGS METHODS  INVENTORY PROJECTIONS - TOP-DOWN: statewide totals are influenced by several macroeconomic factors (e.g., VMT)  GHG SAVINGS - BOTTOM-UP: calculated from entity- specific information projected to cover the overall statewide economy  Both approaches contain assumptions and uncertainties: better data needed to determine progress over time  Areas of greatest uncertainty include: emissions from electricity generation, economic factors  Current data limitations do not obviate necessity to take action now

18.  Accurate, specific and timely data to quantify emissions reductions  Track progress to 3.5% goal  Make carbon credits “credible”  Evaluate environmental & economic impacts  Communicate with the public regarding our progress  Assess local/regional climate impacts INFORMATION NEEDS

19. IMPLEMENTATION PROGRAM  Strategies are “no regrets” but are NOT “no work”; will require staffing, $ and coordination  Develop management plan with milestones for GHG savings  Examine existing regulatory structure; modify to assist w/GHG goals  NEPPS reporting will aid with tracking and communicating progress

20. NJ GHG ACTION PLAN SUMMARY - KEYS TO SUCCESS  Leadership by and coordination among gov’t. agencies: state and federal  Awareness & participation from business, industry and private citizens  More specific, accurate and timely data

21.  Incorporates CO 2 into OMET Program  Credits issued after 2000 baseline  Facility defines quantification protocol  Benefits  Rewards early action  Educates public re. GHG reductions  Promotes innovative technologies  Develops experience w/banking CARBON BANK