1. GREENHOUSE GAS EMISSIONS REGULATION IN CALIFORNIA THE BIG PICTURE

2. 2 LEGAL ASPECTS of CLIMATE CHANGE n LEGISLATIVE n REGULATORY n LITIGATION

3. 3 Addressing a Global Issue Locally: California In the Lead n The Global Warming Solutions Act (AB 32) Statewide Limitations on GHGs n GHG Performance Standards for New Power Plants (SB 1368) n California Energy Commission (CEC) Power Plant Siting Authority n California Air Resources Board (CARB)

4. 4 AB32: Global Warming Solutions Act n Reduce GHG emissions to 1990 levels by 2020 n Applies to Kyoto pollutants CO 2, CH 4, N 2 O, HFC, PFC, Sf 6 n Details to be worked out in regulation n Approach likely to involve: Declining cap Source - specific requirements for identified large emitters Mandatory reporting

5. 5 Power Plant Emissions (SB1368) n Requires CEC and PUC to develop GHG performance standards for long-term procurement of electricity by local utilities. n Could be an interim measure assuming AB32 progress supersedes its standards. See PUC §§ 8341(f) and (g).

6. 6 CARB EFFORTS TO REGULATE GHG’s Motor Vehicle Standards CO 2, Methane, NO x and HFCs Fleet Average basis Starts in model year 2009; 323 CO 2 - equivalent g/mile AB32 Overall Implementation of Act Early Action Measures

7. 7 California: Where do we fit in? THE WORLD n KYOTO CONVENTION n ASIA PACIFIC PARTNERSHIP ON CLEAN DEVELOPMENT AND CLIMATE n EUROPEAN UNION GHG EMISSION TRADING SCHEME (EU ETS) THE U.S. n REGIONAL GREENHOUSE GAS INITIATIVE (RGGI) n CHICAGO CLIMATE EXHANGE VOLUNTARY PROGRAM

8. 8 FEDERAL LEGISLATION: IS PREEPTION COMING? n Feinstein Draft Bill n Bingman Draft Bill n Carper (S2724) n Jeffords (S3698) n McCain/Leiberman (S1151) n Udall/Petri (H.R. 5049) n Waxman (H.R. 5642)

9. 9 LITIGATION: WILL THE COURTS DECIDE HOW TO APPROACH THESE ISSUES? n Environmental Defense, et al. v. Duke Energy Corporation, et al. n Central Valley Chrysler-Jeep, et al. v. Catherine Witherspoon n California v. GM et al.

10. The End