Regional Initiatives to Reduce GHG Emissions in the United States

Dr. Wil BurnsSpring 2011

ROADMAP

Regional Greenhouse Gas Initiative (Northeast)

Western Climate Initiative

Mid-Western Greenhouse Gas Accord

Brief assessment of programs

State initiatives

RGGI: Member States

Members:– Connecticut– Delaware– Maine– Maryland– Massachusetts– New Hampshire– New Jersey– New York– Rhode Island– Vermont

RGGI MOU: State Implementation

MOU, Sec. 3(B.)Legislation and/or Rulemaking. Each Signatory

State commits to seek to establish in statute

and/or regulation the Program and have that

State’s component of the regional Program

effective as soon as practicable but no later than

December 31, 2008.

RGGI: Cap and Trade Plan

Stabilization of power sector carbon dioxide emissions at 188 million tons per year, which is about 4% above average regional emissions between 2000-2004;

Emissions decline from power sector of 2.5% annually from 2015-2018, resulting in emissions levels that is 10% below initial 2009 cap.

Regional Annual CO2 Emissions Budget (short tons)– 2009-2014: 188,076,976– 2015: 183,375,052– 2016: 178,673,127– 2017: 173,971,203– 2018: 169,269,278

RGGI: Individual State Allocations

State 2000 2001 2002 Average 2000-02 Cap 2009-2014

CT 11.9 10.9 9.7 10.9 10.7DE 7.4 7.6 7.7 7.6 7.6MA 25.4 25.4 25.1 25.4 26.7ME 3.2 5.5 5.8 4.8 5.9NH 5.2 4.9 5.6 5.2 8.6NJ 22 20.2 21.1 21.1 22.9NY 69.8 65.6 61.4 65.6 64.3 -RI 3 1.8 3.2 2.7 2.7VT 0.03 0.005 0.02 0.02 1.2MD 38.4 37 38.1 37.5 37.5============================================Total 186.3 178.9 176.7 180.6 188.1

RGGI: Auction Protocols

At least 25% of allowances (one ton per allowance) to be auctioned to support consumer benefit programs;

NY, MA, VT, RI, CT, and ME have all publicly stated their commitment to auction 100%, or nearly 100%, of their allowances to support “consumer benefit programs”

RGGI Offset Options

Landfill methane capture and destruction;

Reduction in emissions of sulfur hexafluoride (SF6);

Sequestration of carbon due to afforestation;

Reduction or avoidance of CO2 emissions from natural gas, oil, or propane end use combustion due to end use energy efficiency in the building sector; and,

Avoided methane emissions from agricultural manure management operations.

RGGI: Leakage

MOU, Sec. 6(A.)(5)if at any point after the launch of the program there is

a determination that the Program has led to a

significant increase in emissions from electric

generating units outside the Signatory States, the

Signatory States shall, after taking into account the

analyses and findings called for under Section 6(a)(1),

implement appropriate measures to mitigate such

emissions.

RGGI: Integration into Federal Programs

MOU, Sec. 6(C.)

Federal Program. When a federal program is proposed, the Signatory States will advocate for a federal program that rewards states that are first movers. If such a federal program is adopted, and it is determined to be comparable to this Program, the Signatory States will transition into the federal program.

RGGI: Review and Future Commitments

MOU, Sec. 6(D.)

Comprehensive 2012 Review. In 2012, the Signatory States will commence a comprehensive review of all components of the Program, including but not limited to:

(1) Program Success. The Signatory States will review whether the Program has been successful in meeting its goals.

(2) Program Impacts. The Signatory States will review the impacts of the Program as to price and system reliability.

(3) Additional Reductions. The Signatory States will consider whether additional reductions after 2018 should be implemented.

U.S. Constitution

Art. I, Sec. 10

No State shall, without the Consent of

Congress . . . enter into any Agreement or

Compact with another State . . .

RGGI: Regional Organization Functions

MOU, Sec. 4 Regional Organization comprised of two representatives

from each Signatory State;

Functions:– “Act as the forum for collective deliberation and action among the

Signatory States in implementing the Program;”– Act on behalf of each of the Signatory States in developing,

implementing and maintaining the system to receive and store reported emissions data from sources and track allowance accounts for the Program;

– Provide technical support for development of offset sources and implementation of program;

(5) The RO is a technical assistance organization only. The RO shall have no regulatory or enforcement authority with respect to the Program, and such authority is reserved to each Signatory State for the implementation of its rule.

WCI Partners & Observers

Western Climate Initiative: Emissions Goals

15% reduction in greenhouse gas emissions below 2005 levels by 2020;

Signatory States agree to commit to long-term reductions sufficient to “significantly lower the risk of dangerous threats to climate change.” Cited 50-80% reductions required by 2050;

Does not replace Signatory States existing goals

Western States and Provinces Goals

Short Term (2010-12) Medium-Term(2020)

Long-Term (2040-2050)

Arizona Not established 2000 levels by 2020

50% below 2000 by 2040

British Columbia Not established 33% below 2007 by 2020

Not established

California 2000 levels by 2010 1990 levels by 2020

80% below 1990 by 2050

Manitoba 6% below 1990 6% below 1990 Not established

New Mexico 2000 levels by 2012 10% below 2000 by 2020

75% below 2000 by 2050

Oregon Arrest emissions growth

10% below 1990 by 2020

>75% below 1990 by 2050

Utah Will set goals by 2008

Washington Not established 1990 levels by 2020

50% below 1990 by 2050

WCI: Coverage of Action in the Goal

Sec. 3: Statement of Regional Goal

Emissions reduction activities by which partners achieve the regional reduction goal should be comprehensive and economy-wide, including:

a. Regional multi-sector market-based mechanisms;

b. Actions in all sectors, including but not limited to: stationary sources, energy supply, residential, commercial, industrial, transportation, waste management, agriculture, and forestry; and

c. Reduction in emission of any GHG reported to the UN Framework Convention on Climate Change by the USEPA and Environment Canada, i.e., carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6).

WCI: New Entrant Criteria

Can be additional U.S. States, tribes, Canadian provinces, Mexican States;

Must have adopted economy-wide greenhouse gas reduction goal;

Must have committed to greenhouse gas tailpipe standards for passenger vehicles

WCI: Load-Based Emissions Standard

Annex A, Statement of Regional Goal

Consumption-based (or “load-based”) emissions estimates for the

electricity sector, except where such estimates are currently

unavailable, in which case production-based estimates are used

(British Columbia). Consumption-based estimates reflect the

emissions associated with generating the electricity delivered to

consumers in each state or province whether the electricity was

generated in state/province or out of state/province.

Midwestern Greenhouse Gas Reduction Accord (MGGRA)

Regional Climate Initiatives

State Renewable Portfolio Standards

State Initiatives

State Alternative Fuel Policies

State Emission Targets