1. State Climate Policy Solutions For a new, stronger, clean energy economy State Climate Policy Solutions For a new, stronger, clean energy economy NCEL09.08.09 K.C. Golden Policy Director NCEL09.08.09 K.C. Golden Policy Director

2. “We are addicted to oil” Symptoms: Economic hemorrhaging: $450 M per month in King County Fever: increasing average temp is the least of it

5. “We are addicted to oil” Symptoms: Economic hemorrhaging: Over $450 M per month in King County Fever: increasing average temp is the least of it Acute national insecurity: “Paying for both sides of the war on terror”

6. Treatments for addiction Gas tax holiday: Cheaper drugs Drilling: Increase the supply of drugs Quit : Steadily reduce dependence….. ….by building a clean energy economy….

7. CAP Policy commitment to steadily reduce fossil fuel dependence …and a platform for launching a green economy

8. State policies: Climate plans Maps from Pew Center

9. State policies: Renewable Portfolio Standards

10. State policies: Vehicle GHG Standards

11. State policies: Commercial energy codes

12. Cap makes it real: Get your wedge on!

13. Key principles for climate policy design EFFECTIVENESS EFFICIENCY EQUITY

14. Effectiveness - Scale

15. How much do we have to reduce climate pollution? Enough to stabilize the concentration of GHGs in the atmosphere “at a level that would prevent dangerous anthropogenic interference with the climate system.” How much is that? Avoid increases in average global temperature of > 2 degrees C How much is that? Stabilize the concentration of GHGs at 350-450 ppm So how much do we have to reduce climate pollution? 80% by 2050. More in the U.S. Avoiding Dangerous Climate Change – Cambridge University Press Effectiveness - Scale

16. Effectiveness - Build

17. Effectiveness – Get going!

18. Efficiency

19. Equity Internationally Domestically Sectors, geographies, industries, economics

20. Equity – Green for all

21. Design issues Cap and trade vs. Carbon tax Effectiveness: Quantity, not price, is the public policy imperative Trade Tax Standards Incentives Investments

22. Design issues -- scope More is better Effectiveness: Reduce more Efficiency: liquidity, simplicity Equity: not just point sources

23. Design issues – emission rights Auction or give away? Effectiveness: rewards innovation; facilitates investment, consumer protection Efficiency: simpler (baselines, early action) Equity: avoids windfalls; level playing field

24. Design issues - Offsets Limit them Effectiveness: discourages transformation Carbon storage in biomass not equivalent to emission reduction Efficiency: verification is complex; “additionality” – critical, but counterfactual Equity: aggravates environmental justice concerns; intergenerational foul

25. Cap and trade works for acid rain Annual Mean Wet Sulfate Deposition 1989-1991 2004-2006

26. Acid Rain SO 2 Program Costs: Much Lower than Originally Predicted 199019942004 Source: EPA, 2006

27. Fossil fuel price politics Concern that climate policy will raise prices But prices are through the roof now! Why? Supply and demand. What drives the opposition? It will reduce our consumption of fossil fuels

28. Public opinion Public “favors” drilling But they favor efficiency, renewables, and climate solutions by wider margins Bottom line: Do something!

29. Why states? “Global” warming is a local, state and regional issue

30. State Climate Policy Solutions For a new, stronger, clean energy economy State Climate Policy Solutions For a new, stronger, clean energy economy NCEL09.08.09 K.C. Golden Policy Director NCEL09.08.09 K.C. Golden Policy Director