Regional Greenhouse Gas Initiative: States Progress on Nations First Carbon CapandTrade Program

1
Regional Greenhouse Gas InitiativeStates
Progress on Nations First Carbon Cap-and-Trade
Program

• Franz Litz
• Climate Change Policy Coordinator
• New York State Department of
• Environmental Conservation

2
Overview

• A Note on the Science
• Understanding Whats at Stake for New York
• Brief Background on RGGI
• Latest RGGI News Allocations

3
Climate Science
We know enough to act now
4
Joint National Academies of Science
StatementJune 2005

• The scientific understanding of climate change
  is now sufficiently clear to justify nations
  taking prompt action.

5
Climate Impacts
Understanding Whats at Stake
6
Visit http//www.northeastclimateimpacts.org/
7
A Changed Northeast Climate

• The warming is already evident
• Annual average temp up 2F since 1970
• Winter average temp up 4F since 1970.
• This temperature increase is correlated to
  already observed changes in our regions climate
• Changes projected for the future are more
  dramatic.

8
Fewer Days with Snow Cover
9
(No Transcript)
10
Regional Greenhouse Gas Initiative
The Nations First Mandatory Cap-and-Trade
Program for Carbon Dioxide Launch Date Jan. 1,
2009
11
Background

• April 2003 Invitation
• 3 Year Design Process
• December 2005 Memorandum of Understanding (7
  States)
• Model Rule Complete
• MD MA to Join

12
The Region at a Glance

• 39.4 million people(13 of US Population)
• 9 of U.S. Emissions
• 11th largest emitter in the world
• 1.8 trillion economy
• (15 of U.S.)

13
Reduction Requirements

• Stabilize emissions at current levels through
  2014
• then reduce by 10 by 2019
• 13 below 1990 levels
• 35 below business as usual

14
RGGI Innovations

• Firing Biomass/Biofuel a control method
• Offsets Valve
• Offsets5 Initial Types
• Natural Gas, Propane, Heating Oil Efficiency
• Land to Forest
• Landfill Gas Capture Combustion
• Methane Capture from Animal Operations
• SF6 Leak Prevention.
• Recognition of International Currencies

15
RGGI Innovations

• Allocations
• States agreed to propose minimum 25 public
  benefit allocation in MOU
• New York proposal100 auction
• Deregulation means consumers bear cost of
  allowances even if they are given to generators
  at no cost
• Benefits of program will inure to the consumers
  through investments in energy efficiency and
  clean energy technology
• Vermont will also do 100 auction Others?

16
Emissions Market Drives Creative Solutions

• Carbon price will promote
• reduction in fossil fuel consumption
• non-emitting electric generation
• development of abatement technologies
• innovation yet unknown

17
RGGI Next Steps

• Complete RGGI Implementation
• Bring Maryland On
• Bring Massachusetts On
• Add Additional StatesRI, PA?
• Link to California? Others in West Coast AZ, NM,
  OR, WA?
• Address Imports of Electricity

18
RGGI California

• MOU among RGGI States Welcomes Participation by
  Additional States
• RGGI California
• 24 of U.S. Population
• 28 of U.S. Economy
• 3rd Largest World Economy
• 15 of U.S. Emissions
• 6th Largest Emitter Worldwide

19
Franz Litz Climate Change Policy CoordinatorNY
Dept. of Environmental Conservation ftlitz_at_gw.dec.
state.ny.us