Brief revisions, CRC plans revisions

Overview of referencing in plans

% grading scheme for CRC final projects

prove feasibility in plans

Australia’s Carbon Pricing Nov 8, 2011: Australian Senate passes “Clean Energy Future”July 1, 2012: implementedCovers emitters >25,000 tonnes (N=300); 50% of Australia’s emissions

Carbon price fixed at $23/ton for 2012-2015 interval; unlimited number,price increases by 2.5% per year

Becomes cap-and-trade program in 2015-2018; with price floor and ceiling,and fixed # of permits

Elements:- goal is to reduce GHG emissions by 80% under 2000 levels by 2050->50% of revenue generated returned to (low-income) households

(taxless bar raised from $6,000 to $18,000 income)-other revenue used to cushion “trade-exposed” industries and workers,

boost renewable power, efficiency, and low-C energy-projected to cost $4billion in first 4yrs (not counting revenue)-agriculture, gasoline largely exempt (or levied through separate taxes)-3 new government branches created

The Clean Future Energy Plan creates:

New programs/institutions:1)Clean Energy Finance Corporation $10billion to invest in renewable

energy, low-polluting, and efficient technologies. Government loans2)Australian Renewable Energy Agency coordinate $3.2billion in

existing grant funding programs3)Clean Technology Program improve efficiency in manufacturing,

support industry R&D

Government institutions:1)Clean Energy Regulator administers carbon pricing program2)Climate Change Authority advising on emissions caps, reviewing

carbon pricing, renewable targets, etc3)Energy Security Council advise gov’t of systematic risks to industry,

advise on provision of loans to coal-fired power generators

Will Labor Party lose in 2013 elections? and give Liberal-Nationals chanceto repeal the CEF plan?

So, how’s it going down under?

Virgin Australia added $2-6 surcharge to every flight.

Emissions down 8.6% in first six months!-more wind and hydropower, less coal

Unprecedented drop in emissions, as tracked for 120yrs.

Food for thought?What does it mean that Australia’s $23/ton is more thandouble the price of carbon in the EU? Does it matter?

Australia suffered a severe decade-long drought that ended in 2010.Back then, 73% of population concerned about climate change.Now, 53% of population is concerned.

http://www.theaustralian.com.au/national-affairs/climate/

National Energy/Climate Bills

• How does the legislative process work?

• What bills have been considered?

• What are the pros and cons of each? Who stands to win and who stands to lose?

The legislative process: how does a bill become law?

Step 1: Bill is introduced by sponsor (and co-sponsors)assigned a # (S.#### for Senate bills and H.R.#### for House bills), printed and posted on web http://www.govtrack.us

Step 2: Committee considerationreferred to one or more House or Senate committees; must receive a majority vote from committee members in order to move to the floor for a full vote

Step 3: Subcommittee considerationsome bills sent to special subcommittee for further study or public hearings;subcommittee may “mark up” bill by adding amendments and making changes;must receive a majority vote to send back to committee or it dies

Step 4: Bill “reported” by committee; published

Step 5: Floor action – legislative calendarbill scheduled for debate, or “floor action”; majority party decides order

Step 6: DebateHouse members typically limited to 1-5 minutes each, if at allSenators have unlimited speaking time opponents can filibuster until either

a) back-door agreement reachedb) 60 senators move to end debate and call a vote

Step 7: Votingeither electronic or verbal

Step 8: Bill referred to other chamber other chamber can approve, reject, amend, or ignore the bill

Step 9: Conference committee towards “reconciliation”members from House and Senate work to compromise on differencesin passed bills; changes must be approved by House and Senate, else bill dies

Step 10: Signature by Presidentif President vetoes bill, 66% of House and Senate members needed to override

HOUSE

H.R. 2454: American Clean Energy and Security Act Passed 6/25/09Waxman, D-CA; Markey, D-MA 219 to 212

SENATE

S. 1462: American Clean Energy Leadership Act Passed Comm.Bingaman, D-NM (chairman)

S. 1733: Clean Energy Jobs and American Power Act Passed Comm.Kerry, D-MA; Boxer, D-CA; Cardin, D-MD; Kirk, D-MA; 9/30/09

S. ????: Kerry, D-MA; Graham, R-SC; Lieberman, I-CT working to introduce comprehensive climate/energy bill that will muster 60 votes needed toblock predictable Republican filibuster

Bill Name Status

H.R. 2454: American Clean Energy and Security Act

Key Provisions:1)Clean Energy

-renewable electricity/efficiency standard, CCS, new rules for new coalplants, R&D for electric vehicles, $ for smart grid

2)Energy Efficiency- building, lighting, appliance, and vehicle efficiency programs

3)Cap and Trade Program

4)Transitioning to a Clean Energy Economy-preserve domestic competitiveness, support workers and consumers,support for domestic and international adaptation measures

5) Agriculture and Forestry-related offsets (tied to #3)

Waxman-Markey Cap & Trade

Covers 1) stationary sources emitting >25,000 tons of GHG/yr2) oil refineries3) importers of petroleum4) natural gas distributors5) “F-gas” producers (CFCs, HCFCs, HFCs etc) [separate cap]

Targets-3% of 2005 by 2012, -17% by 2020; -83% by 2050

Distribution of Allowances20% allowances auctioned at first, 70% by 2030; funds to go to

1) protecting consumer (esp. low income) from rising electricity and gas prices

2) fund technological advances

Where does the money from allowances go to?

electricityconsumers for price protection

consumers asenergy dividend

low income consumers

E-intensive,trade-vulnerable industry

big coal

nat’l gas consumers

Waxman-Markey Cap & Trade (cont.)

Offsets- allows 2 billion tons of offsets system-wide (1 billion domestic;

1 billion international); President can recommend increase or decrease-creates “Offsets Integrity Advisory Board” to oversee and qualify offsets- involves domestic offset program using agriculture and forestry

Costs to Consumers- Congressional Budget Office cost of $175/yr/household on average

net benefit of $41/yr/household for low-income- EPA estimates cost of $80-111/yr/household

Carbon Market OversightFederal Energy Regulatory Commission; Commodity Futures Trading

Commission; no over-the-counter trading of derivatives

Interaction with State and Regional Cap-and-Trade ProgramsState programs put on hold 2012-2017Existing state CO2 allowances can be traded in for federal allowances

Waxman-Markey on Coal

Focuses on CCS (Carbon Capture and Storage)-creates Carbon Storage Research Corporation ($1 billion/yr for 10 years funded from small tax on electricity rates); oversee 5 large commercial CCS operations

-for 10 years, gives bonus allowances to companies that do CCS (equivalent to $100/ton of CO2); second 10 years bonus allowances are auctioned

ACES gives $250 billion in CCS incentives by 2050!

Waxman-Markey on Nuclear and low-C Energy

Creates sustained federal funding for low-C energy-creates Clean Energy Deployment Administration (initially funded by $7.5 billion in “green bonds” granted by US Treasury); 20yr charter; oversee distribution of allowances granted to clean energy projects

Removes regulatory and financing hurdles for nuclear-places sole responsibility for nuclear permitting and financing in the DOE; heavy oversight by Energy Secretary; $19 billion available in financing right now

Electricity generating capacity by 2050 in BAU and with ACES

February 14, 2013

Climate Protection Act introduced by Sen. Sanders (D-VT) and Sen. Boxer (D-CA)

proposes $20/ton price on carbon

Sustainable Energy Act introduced by same folks

proposes to eliminate fossil fuel subsidies($72 billion from 2002-2008; vs $12.2 billion for renewables)

February 17, 2013: 40,000 rally in DC to support clean energy Keystone pipeline, anti-fracking

What’s happening now

Keystone Pipeline Fact Sheet

proponents say “wouldn’t you ratherget your oil from Canada than Saudi Arabia and Venezuela?”

fact: 2.4billion barrels imported daily;700,000 barrels from Canada.

opponents say “we’re investing$ and inertia into a CO2-intensivefuture”

It’s Obama’s call.

Climate Change and Energy

• An EPA Priority– Reducing greenhouse gases (GHG) is a top

priority for former Administrator Lisa Jackson

• Some key actions taken:– Endangerment Finding– Mandatory Reporting– Renewable Fuels Standard– Light-Duty Vehicle GHG Emissions

Standards and CAFE Standards – GHG permitting requirements on

large industrial facilities (Tailoring Rule)

– Carbon Capture & Sequestration– A variety of voluntary and other initiatives

DRAFT PRESENTATION

Remaining slides from Dr. Ken Mitchell, EPA 2010

Endangerment Finding

• Endangerment Finding: Current and projected concentrations of the six key well-mixed GHGs in the atmosphere threaten the public health and welfare of current and future generations

• Cause or Contribute Finding: The combined emissions of these well-mixed GHGs

from new motor vehicles and new motor vehicle engines contribute to the greenhouse gas pollution which threatens public health and welfare

• Final Rule published in Federal Register December 15, 2009

Greenhouse Gases (GHGs)

• Carbon Dioxide (CO2)• Methane (CH4)• Nitrous Oxide (N2O)• Hydrofluorocarbons (HFC)• Perfluorocarbons (PFC)• Sulfur Hexafluoride (SF6)

GHG Reporting Rule

* We delayed inclusion of certain source categories as we consider comments and options

Upstream Sources

Suppliers of Coal-based Liquid Fuels Suppliers of Petroleum Products Suppliers of Natural Gas and Natural Gas Liquids Suppliers of Industrial GHGs Suppliers of Carbon Dioxide (CO2)

Downstream Sources

General Stationary Fuel Combustion Sources Electricity Generation Adipic Acid Production Aluminum Production Ammonia Manufacturing Cement Production Ferroalloy Production Glass Production HCFC-22 Production and HFC-23 Destruction Hydrogen Production Iron and Steel Production Lead Production

Mobile Sources

•Vehicles and engines outside of the light-duty sector (light-duty in NPRM to Establish Light-Duty Vehicle Greenhouse Gas Emission Standards and Corporate Fuel Economy Standards)

Covered GHGs

• Carbon Dioxide (CO2)• Methane (CH4)• Nitrous Oxide (N2O)• Hydrofluorocarbons (HFC)• Perfluorocarbons (PFC)• Sulfur Hexafluoride (SF6)• Nitrogen Trifluoride (NF3)• Hydrofluorinated Ethers (HFE)

Expressed in metric tons of carbon dioxide equivalent (mtCO2e)

First report for CY10

Final Rule Published in Federal Register on October 30, 2009

Renewable Fuels Standard (RFS2)

• Revision to current RFS (RFS1) as required by the Energy Independence and Security Act (EISA)

• Significant increase in renewable fuels to displace petroleum consumption (36 billion gallons by 2022)

• CO2 Lifecycle analysis

• Final Rule Signed 2/3/2010

Lifecycle GHG Thresholds Specified in EISA

(percent reduction from 2005 baseline)

Renewable fuela  20%

Advanced biofuel 50%

Biomass-based diesel  50%

Cellulosic biofuel  60%

a The 20% criterion generally applies to renewable fuel from new facilities that commenced construction after December 19, 2007.

Mobile Source GHG/CAFE Proposed Rule

• First national GHG emissions standards under the Clean Air Act

• Satisfies requirements under both Federal programs and the standards of California and other states

• Applies to passenger cars, light-duty trucks, and medium-duty passenger vehicles, covering model years 2012 through 2016

• Meet an estimated combined average emissions level of 250 g CO2 per mile in model year 2016, equivalent to 35.5 mpg if the automotive industry were to meet this CO2 level all through fuel economy improvements

• Now Obama mandated 54.5 mpg by 2025(August 28, 2012)

Proposed Tailoring Rule

• Focused on large facilities emitting over 25,000 tons of CO2e/year

• Facilities required to obtain construction permits that would demonstrate they are using the best practices and technologies to minimize GHG emissions

• The rule proposes new thresholds for greenhouse gas emissions (GHG) that define when Clean Air Act (CAA) permits under the New Source Review (NSR) and title V operating permits programs would be required for new or existing industrial facilities.

• Would cover nearly 70 percent of the national GHG emissions that come from stationary sources, including those from the nation’s largest emitters—including power plants, refineries, and cement production facilities.

• Small farms, restaurants and many other types of small facilities would not be subject to these permitting programs

• Proposal in Federal Register on 10/27/09