Climate Change

John Sherwell

PPRP

Two major initiatives

1 – RGGI http://www.rggi.org/ • All NE states except PA• Component of the HAA• Affects fossil generating units >25MW• A cap-and-trade program• Stabilize emissions at current levels from 2009

through 2015, • then to achieve a 10% reduction in emissions by

2019.

Compliance

• Own allowances to cover emissions

• Reduce emissions

• Credits from offset projects

State Emissions Cap (Tons CO2)

CT 10,695,036

DE 7,559,787

MA 26,660,204

ME 5,948,902

NH 8,620,460

NJ 22,892,730

NY 64,310,805

RI 2,659,239

MD 37,505,984

TOTAL 188,078,977

RGGI Inventory

Each state sets fraction to auction (>25%)MD ~100% allowance auction Allocations for

new generationeconomics [PPA terms]renewables

Owning allowances

Four RGGI-wide auctions/year (2 in 2008)First auction announced – Sep 25

2009 compliance year allowancesReserve price $1.8612,565,387 allowances on auctionMD placed 5,331,781 allowances on auctionNot all states are participating – regs not in placeMD regs final

authorize: trading program, auction Next auction in Dec

Auctions

Uniform price, sealed bid, one round formatBids are in blocks of 1,000 allowancesCan’t bid for more than 25% of allowances

Demand < supplyAllowances sell at reserve price

Demand > supplyAllowances sell at marginal price

MEA recipient of MD net revenues

Auctions

Emission Reductions

• Credits for early reductions

Switching from oil to gas – summertime

• Biofuels

Biodiesel in CTs

Other biomass co-firing

Offsets

RGGI compliance offsets currently limited to: 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; and

Avoided methane emissions from agricultural manure management operations.

2 - Maryland Commission on Climate Change

• Formed April 20, 2007 by Executive order of Governor O’Malley

• At a minimum reduce GHG emissions– To 1990 levels in 2020– 80% from 2006 levels by 2050

• Working groups formed for planning

Two major initiatives

Working Groups

• Scientific and Technical – UM lead

• Greenhouse Gas and Carbon Mitigation– MDE lead

• Agriculture, Forestry and Waste Management • Cross Cutting • Energy Supply • Residential, Commercial and Industrial • Transportation and Land Use

• Adaptation and Response– DNR lead

• Existing Built Environment and Infrastructure • Future Built Environment and Infrastructure • Resource and Resource-based Industries • Human Health, Safety and Welfare

2-Phase Approach

• Phase 1 – develop policy options– Report delivered the Office of the Governor– Coming soon to a website near you

• (http://www.mdclimatechange.us/)

• Phase 2 – develop implementation plans– Agencies develop plans early 2009

Questions?