mga overview presentation
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Overview of Greenhouse Gas Reduction Accord and Energy Security
and Climate Stewardship Platform
12 States Illinois Indiana IowaKansasMichiganMinnesotaMissouriNebraskaNorth DakotaOhioSouth DakotaWisconsin
12-State MGA Footprint plus Manitoba and Ontario
Governors’ First Steps
• Co-chairs: WI Gov. Jim Doyle (D) and MN Gov. Tim Pawlenty (R)• Milwaukee, WI -- November 14-15, 2007• Funding from Joyce Foundation• Three stakeholder advisory groups developed recommendations: Power
Sector, Bioeconomy & Transportation, and Carbon Markets• Establishment of Accord and Platform
• Midwestern version of RGGI and WCI
• IA, IL, KS, MI, MN, WI & Province of Manitoba as full signatories
• IN, OH, SD and Province of Ontario as observers
Midwestern Greenhouse Gas Reduction Accord
Map Source: www.pewclimate.org
States Covered by GHG Accords = 50% of population + > 50% of GDP
• Establishes GHG reduction targets and timeframes
• Develop a market-based and multi-sector cap-and-trade mechanism to help achieve GHG reduction targets
• Establishes a advisory groups composed of representatives from the public, private, non-governmental institutions to make recommendations to jurisdictional leaders
Accord
July 2008 – Establish targets for GHG emission reductions
November 2008 – Complete development of proposed Cap & Trade agreement and model rule
July 2010 – “Complete the undertakings”
Accord Timeline
Plans Established
Jan. ‘09:Compliance Date
Jan. ‘09:Adopt Scoping Plan
Aug. ‘08:Projected Model Date Announced
Nov. ‘08: Projected Model Date Announced
RGGI
California
WCI
Accord
Accord Sub-groups
• Scope• Target-Setting, Data & Reporting• Modeling• Allowances• Offsets
Accord Stakeholders
•3M•Alcoa Inc.•Archer Daniels Midland Company•BP America•Clean Wisconsin•CMS •ConocoPhillips•Core Energy•Energy Development Initiative•Environment Illinois•Environment Ohio•Illinois AFL-CIO•Iowa Farm Bureau•Izaak Walton League of America
•Kansas State University•Kansas Corporation Commission•Manitoba Hydro•Manitoba Science, Technology, Energy and Mines•Michigan Dept. of Environmental Quality•Midwest Generation LLC•Minnesota Chamber of Commerce•Missouri River Energy Services•National Wildlife Federation•NewPage Corporation•North Dakota Dept. of Agriculture
•North Dakota Farmers Union•NRDC Midwest Program•NSP-Minnesota•Office of Gov. Blagojevich•Office of Gov. Pawlenty•Office of Gov. Daniels•South Dakota Dept. of Environment and National Resources•State of Wisconsin Dept. of National Resources•The Dow Chemical Company•The Land Institute•The University of Iowa•Western Michigan University•Wisconsin Public Power Inc.
Keys to Success
• Leadership from governors• Multi-sector approach• Advisory/stakeholder input• Participant and observer status• Potential for new jobs• Cap-and-trade plus parallel development
of complementary policies
• Accord is a part of broader energy initiative
• Comprehensive in scope, integrated in approach and ambitious in its measurable goals and deliverables
• Combined – Accord and Platform uniquely positions Midwest as leader in energy and climate issues
Energy Security and Climate Stewardship Platform
• Guiding Principles and Key Strategies
• Measurable Goals, Objectives & Policy Options
1. Efficiency2. Bio-based products and transportation 3. Renewable electricity; and4. Advanced coal with CCS.
Platform Elements
• Energy Efficiency
• Bioeconomy & Transportation
• Renewable Electricity, Advanced Coal and Carbon Capture
Advisory Groups
Platform Stakeholders•Abengoa Bioenergy Corporation•Alliant Energy•American Council for an Energy-Efficient Economy•American Electric Power•American Wind Energy Association•Baxter Healthcare•Builders Association of Manitoba•CC 5-6 Technologies•Center for Energy & Environment•Centerpoint Energy Minnegasco•Chippewa Valley Ethanol Company•CHS Foundation Board•Citizens Utility Board•Clean Air Task Force•Clean Wisconsin•DTE Energy•Duke Energy•Ecology Center•Energy Advocate•Energy Center of Wisconsin•Environmental Law and Policy Center•General Motors Corporation•Government of Manitoba•Great River Energy•IBEW Local 2150
•ICM, Inc.•Illinois DCEO•Illinois Farm Bureau•Indiana Wildlife Federation•International Paper•Iowa Association of Municipal Utilities•Iowa Department of Public Safety•Iowa Environmental Council •Iowa Renewable Fuels Association•Iowa State University•Johnson Controls, Inc.•Kansas Geological Survey•Madison Gas & Electric Company•Manitoba Dept. of Energy, Science, and Technology•Manitoba Hydro•Medtronic, Inc.•Michigan Environmental Council•Michigan Office of Geological SurveyMichigan Municipal Electric Assoc. -Michigan Public Service Commission•Michigan State University•MidAmerican Energy Holdings Co.•Midwest Ag. Energy Network•MEEA•Midwest ISO
•Minnesota Power•Minnesota Public Utilities Commission•OH Air Quality Development Authority•Ohio Dept. of Agriculture•Ohio State University•Plum Creek Timber Co.•Poet•Public Service Comm. Of WI•SD Utilities Commission•Sieben Energy Associates•SMMPA•State of Michigan•The Nature Conservancy•United Mine Workers of America•University of Dayton•University of Illinois•University of Minnesota•Virent Energy Systems•Wal-Mart•Westar Energy•Wind on the Wires•WISCAP•Wisconsin Clean Cities•Wisconsin Energy Conservation Corp.•Wolverine Power Cooperative
Goal: Meet at least 2% of regional annual retail sales of natural gas & electricity via efficiency by 2015 and each year thereafter.• Measured annually by baseline of rolling average
of previous three years retail sales.• C02 Savings = eliminate growth in C02 from
electricity & gas after 2015• Most aggressive regional commitments in North
America
Energy Efficiency
Energy Efficiency• Organized into 4 subgroups:– Energy Efficiency potential studies– Utility-related policies– Building codes, appliances standards & governments
leading by example– Best practices
• Fleshing out policy options which will be analyzed by Center for Climate Strategies
• CCS will complete their analysis by Sept.-Oct.• In October MGA’s model will enable Advisory Group
to determine packages of policies that achieve MGA’s 2% goal
Goals by 2025: • Increase availability of low-carbon fuels
by 10-fold• Reduce fossil fuel inputs to biofuels by half• Meet half the region’s transportation demand with
biofuels and other low-carbon fuels• Midwest will achieve highest biofuel market
penetration anywhere
Bio-economy & Transportation
• Goal: By 2030, 30 percent of region’s electricity consumed comes from renewable sources
Most aggressive regional commitments in North America
Renewable Electricity
• Objectives include: • Expanding the region’s domestic production of wind turbines, towers
and blades, solar technologies and other renewable energy technologies
• Make most efficient use of the existing transmission infrastructure and develop new infrastructure to accommodate the region’s economic renewable electricity
• Ensure retention of local economic benefits from wind and other renewable power development
• Maximize cost-effective renewable electricity production in the region and its integration on the grid
Renewable Electricity
Goals:
• By 2012: A multi-jurisdiction CO2 pipeline sited and permitted.
• By 2015: Commercial IGCC with CO2 capture using both eastern & western coals by 2015 (MGA states have 25% of U.S. recoverable reserves).
• By 2020: all new coal plants have CCS.• By 2050: entire coal fleet is transitioned to CCS.• Regional commitments rival those of the European Union
Advanced Coal w/CCS
Basic Scope of Work for Each Advisory Group
Quantifiable Policy Measures • Identify, characterize, model, prioritize and recommend quantifiable
policy measures to governors and premier’s staff to achieve MGA goals.– Recommend policy measures to MGA Greenhouse Gas Accord
advisory group to complement cap-and-trade in achieving broader regional emissions reductions targets and also to reduce the cost of the cap-and-trade program itself.
Other Initiatives • Identify, develop and, where appropriate, begin implementing critical
initiatives that achieve Platform’s goals (e.g., technical assessments, public-private partnerships, collaborative projects, etc.).
Scope of Work (cont.)
Regional Scenario Model Development • Provide input into the design of a model to run regional
scenarios that demonstrate the results of multiple combinations of energy efficiency, bioenergy, renewable electricity and advanced coal/CCS themes
MGA Energy Security & Climate Stewardship Roadmap • Develop a broader roadmap that outlines modeling results,
recommended policies and initiatives, implementation results to date and next steps (roadmap will be a primary documentary centerpiece for next Summit in Sept. 2009)
6 Cooperative Regional Initiatives
• CO2 management infrastructure partnership• Transmission adequacy initiative• Low-carbon energy transmission infrastructure• Bioproduct procurement program• Renewable fuels corridors and common signage• Advanced bioenergy permitting collaborative
Platform Elements
• Challenges:– Most coal-dependent power sector– Energy intensive manufacturing and agriculture industries
• Opportunities:– World class renewables potential– Vast reserves of coal with geologic formations to store
CO2 and agriculture land, forests and wetlands to sequester it
– Industrial base that can be retooled to design, manufacture and service next generation energy technologies at scale
Regional Challenges and Opportunities
Keys to Success
• Leadership from governors• Midwestern practicality
- Advanced coal and renewables- Strong energy efficiency component
• Regional goals• Stakeholder input• Potential for new jobs
