1. ASHRAE CTTC Issues Update Tom Werkema June, 2010

2. Climate International

3. Climate Change 2010 “Copenhagen Accord” agreed –155 countries voluntarily committed = 85.05% of global emissions –$30b financing over 3 years Somewhat unclear how “fund” will be managed US contribute 1/3 rd –Agreement on forests, reforestation 2010: 5 meetings plus COP/MOP (Mexico) –Meetings early June in Bonn, Germany HFCs – [“Urges Parties, without prejudice to the scope of the Convention and its related instruments, to pursue, under the Montreal Protocol on Substances that Deplete the Ozone Layer, the adoption of appropriate measures to progressively reduce the production and consumption of hydrofluorocarbons”, ]

4. 4

5. Climate US

6. EPA Sector Emissions Profile 1990-2008 (million metric tons CO 2 e) Source: EPA Industrial Energy Consumers of America Total CO 2 e Emissions 19902008Difference Residential927.21,177.1+27.0% Commercial749.91,037.6+38.4% Industrial1,525.21,505.1-1.3% Transportation1,488.81,789.9+20.2% Electricity1,804.62,342.0+29.8% Direct Emissions 19902008 Difference Residential339.4343.0+1.0% Commercial216.7219.7+1.4% Industrial844.5819.8-2.9% Transportatio n 1,485.81,785.3+20.2% Indirect Emissions 19902008 Difference Residential587.7834.1+41.9% Commercial533.2817.9+53.4% Industrial680.6685.3+.6% Transportatio n 3.04.6+53.3%

7. US Climate Change – 2009 emissions Total emissions up about 5% since 1990, preliminary –KP – 7% decrease Average 2008-2012 –Down 2.9% in 2008, 7% down in 2009

8. The American Power Act -2010 (introduced by Senators Kerry, Lieberman – no Graham) Title I Domestic Clean Energy Development –Domestic Nuclear (regulatory efficiency, loan guarantees, spent fuel) –Offshore Oil and Gas (States may block up to 75 miles) –Coal (capture and sequestration) –Renewables –Transportation (electric vehicles)

9. The American Power Act -2010 Title II – Global Warming Pollution Reduction –Amends Clean Air Act –Allowance Program(s) –Fast Mitigation HFCs – 15% of baseline by 2032 Black Carbon, International measures –GHG Market Regulation

10. The American Power Act -2010 Title III – Consumer Protection –Allowances to local distribution companies –Natural gas –Consumer Relief – up to 250% of poverty level, Universal refund Title IV – Job Protection and Growth –Industrial emissions reductions support –Clean Energy jobs –Grants for clean cars, agriculture, new technology

11. The American Power Act -2010 Title V – International Climate Change Title VI – Community Protection from Climate Change Title VII – Budgetary Impacts

12. Kerry-Lieberman Bill: Carbon Pricing Effect on Average Wellhead Price of Natural Gas Source: EIA, IECA

13. 13 Calculate Your Cost Increase Source: EIA Industrial Energy Consumers of America

14. 14 US EPA Published “endangerment” Final Rule –Potentially affects many major NA Plants, using Clean Air Act standards (NSR, PSD, TRI, etc.) to regulate emissions –25,000 MT CO 2 e, not 250 MT hazardous pollutant –16 Lawsuits filed from 25+ Parties, 3 from States, none by ENGOs –18 States support, 11 States against –EPA will not regulate stationary sources until 2011 Tayloring rule published –75,000 MT CO 2 e/year stationary sources in 2011 –Add currently non-permitted 100,000 MT CO 2 e/year July, 2011 GHG Reporting Rule Final – –Still negotiating on some in-process HFC flows –Monitoring plans must be on file by March 31, 2010 –Reports due first quarter 2011, for 2010 data Opened comment period on Clean Water Act impact from GHG emissions

15. 15 Europe Review of Fgas Regulation 842/2006 –Commission proposal by 4/7/2011 –Consultant Technical Study underway including on HFO availability –Expected Considerations Policy scenarios International consumption reduction arrangement (& scenarios) Further use prohibitions –Expected Outcomes Revised regulation: 2013/14 implementation, earliest July 2013 Further HFC bans –Foam blowing, domestic refrigeration??? Overall phase-down and quota system with 30% reduction by 2020 –Base year 2005-2007?

16. State/Regional Activity

17. ASHRAE Issue Update Winter, 2009 RGGI – Regional Greenhouse Gas Initiative –Northeastern States –Utilities only –Continue quarterly auctions WCI – Western Climate Initiative –Several states have w/d –Oregon, California still committed

18. Assembly Bill 32: The California Global Warming Solutions Act of 2006 September 2006: “The Time for Action is Now!” Sets in statute 2020 emission limit at 1990 level Now up for November Referendum vote

19. Montreal Protocol International

20. 20 Montreal Protocol HFC Amendment – 2009 – proposed by Canada, US, Mexico –Blocked by China/India China strongest –Ultimately, no decision –2010 – discussions mid year in Geneva, November-Kampala US reintroduced early May, supported by Canada, Mexico Micronesia also introduced Expect EU to not object Expect China/India to object HFC Industry fundamentally supports 2014 earliest implementation

21. Miscellaneous First HCFC-22 smuggling case completed –Over 400,000 Kgs –30 month prison term, $1.3 M penalty –Several other cases pending Second sentence in April – related to above, but further down the commerce chain –100,000 Kgs –36 month prison term, fine