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c2es

c2es.org. Regional Climate Alliances Spring 2008. 2/27/2007 15% below 2005 by 2020 cap and trade. 11/15/2007 set emissions targets by 11/15/08 ~60-80% cuts by ???? (2040?) cap and trade; C inventory, reporting full implementation by mid-2011. 12/20/2005 cap emissions at

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c2es

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  1. c2es.org

  2. Regional Climate Alliances Spring 2008 2/27/2007 15% below 2005 by 2020 cap and trade 11/15/2007 set emissions targets by 11/15/08 ~60-80% cuts by ???? (2040?) cap and trade; C inventory, reporting full implementation by mid-2011 12/20/2005 cap emissions at current levels by 2009, reduce by 10% by 2019

  3. Regional Climate Alliances Spring 2010 Dec 20, 2005, eff. 1/1/09 Nov 15, 2007, in devt Feb 26, 2007, eff. 1/1/12 (goal = -15% of 2005 levels by 2020) June 25, 2008, not eff. yet

  4. Regional Climate Alliances Spring 2012 Transportation Climate Initiative (2010 declaration from 11 states)

  5. X X Regional Climate Alliances Spring 2013 X X X X * no action since 2010 * now only CA and Canadian provinces

  6. and then there were two: • Western Climate Initiative (CA, BC, Quebec) • -15% of 2005 by 2020 • - cap and trade programs linked www.wci-inc.org

  7. 2) Regional Greenhouse Gas Initiative (RGGI) CT, DE, ME, MD, MA, NH, NY, RI, VT current cap: 91 million short tons CO2/yr www.rggi.org

  8. RGGI emissions by source http://www.epa.gov/statelocalclimate/resources/state_energyco2inv.html

  9. Regional Greenhouse Gas Initiative (RGGI) • set regional limits on GHG emissions from electric power plants & transportation • based on “Model Rule”, but each state can design their own strategy • for implementation (state targets set for 2009 emissions) • came into force in 2009 • power plant emissions remain constant through 2014, fall by 10% by 2018 • REVISED 2012: -40% by 2014, and -50% by 2020 • “cap & trade” mechanism: RGGI states will set GHG cap and then auction • permits equal to the tons of CO2 allowed by the cap • - auctions are quarterly (next one March 11th, 2015)

  10. Basic elements of Model Rule: • applicability: applies to fossil fuel-fired electric generating units >25MW • (covers 25% of regional GHG emissions) • 2) size & structure of cap: • a) states must stabilize power sector CO2 emissions at 2009 emissions during implementation (2009-2014) • b) then reduce emissions by 2.5%/yr for 2015-2018 • (total reductions of 10% below 2009 levels by 2018) • 3) permitting: each CO2 source must have approved CO2 budget emission monitoring plan (EMP); developed by state energy regulators • 4) allowance allocation: most CO2 allowances auctioned off (vs. ETS) • 25% allowances to support consumer benefit programs • 5) temporal flexibility mechanisms: • facilities can “bank” or “rollover” CO2 allowances • early reduction allowances granted for early demonstrated reductions • extended compliance period

  11. Basic elements of Model Rule: (cont.) • 6) emissions monitoring: CO2 unit must install and certify monitoring system, report quality-controlled data (borrows from EPA acid rain program) • 7) offsets: awards CO2 offset allowances to projects outside capped sector that sequester/reduce CO2 emissions (limited to 3.3% of unit’s total compliance obligation) • must be “real, additional, verifiable, enforceable, and permanent.” • http://rggi.org/market/offsets/categories • includes SF6 emissions, trees, building HVAC efficiency (nat gas, oil, propane), landfill methane capture • 8) price triggers: • stage 1: if CO2 allowance cost >$4, CO2 offsets can increase • stage 2: if CO2 allowance cost >$10, CO2 offsets increase more, • compliance period extended, international CO2 credits allowed

  12. Carbon Allowance Reserve (as of 2014)

  13. Who stands to gain here? Who stands to lose? Or is it that simple? What would you do as a power company in a RGGI state? What is leakage? and how does it impact RGGI?

  14. LEAKAGE • - a shift of electricity generation from capped sources subject to RGGI to higher-emitting sources not subject to RGGI. • -impossible to predict ahead of time (market and political forces unknown) • -RGGI proposes to: • track load vs. generation • monitor C-intensive nature of non-RGGI power • policy options:1) reduce electricity demand (efficiency), so indirectly reduce leakage • 2) limit the amount of CO2 (<xx lbs CO2/MWh) that could be “emitted” through long-term purchasing agreements between RGGI utilities and regional power plants • 3) emissions portfolio standard

  15. http://fas.org/sgp/crs/misc/R41836.pdf

  16. How much money did they make? Across three past CO2 allowance auctions, cost ~$1.93/ton

  17. http://www.eia.gov/todayinenergy/detail.cfm?id=14851

  18. http://rggi.org/docs/Auctions/26/PR120514_Auction26.pdf

  19. How much did it cost the average customer? Distributing the CO2 allowance costs around the ratepayers in those States, RGGI costs added $0.43/month to the average electric utility bill. Where did all this money go? http://rggi.org/images/Reinvestment.JPG

  20. http://rggi.org/docs/Documents/2012-Investment-Report_ES.pdf

  21. Has RGGI reduced emissions? [does it matter?] http://fivethirtyeight.com/features/the-cap-matters-most-in-cap-and-trade-markets/

  22. no big difference between RGGI and non-RGGI states, so far http://fivethirtyeight.com/features/the-cap-matters-most-in-cap-and-trade-markets/

  23. fuel switching (coal to natural gas) reduced CO2 emissions http://www.eia.gov/todayinenergy/detail.cfm?id=14851

  24. new cap will challenge RGGI’s effectiveness http://fivethirtyeight.com/features/the-cap-matters-most-in-cap-and-trade-markets/

  25. a different perspective source: rggi.org

  26. Categories of State GHG activities • Vehicle Emissions Standards • Renewable Portfolio Standards • 3) Efficiency Standards/Programs • 4) Cap and Trade programs Most content in the following section from Center for Climate and Energy Solutions (c2es.org)

  27. Vehicle Greenhouse Gas Emissions Standards – California leads the way 2002: CA passes law requiring 30% emissions reductions by 2012 2002-2007: EPA stalls on granting CA waiver to step outside federal emissions standards in response to industry complaints 2007: CA files lawsuit against EPA for stalling 2009: EPA grants CA waiver to set standards *if* changes to 2016 timelines to be consistent with Obama CAFE standards

  28. Federal Corporate Average Fuel Economy (CAFÉ) standards CAFÉ standards current: 35.5 by 2012-1016 future?: 54.5 by 2025

  29. Plug-in electric vehicles

  30. Biofuels

  31. Low-carbon Fuel Standard: a lifecycle analysis of trans. fuel sources Ex from California: fuel providers must reduce C intensity of fuel mix 10% by 2020

  32. Renewable Portfolio Standards Ranges from: CA: 33% by 2020 TX: 5% by 2015 NY: 30% by 2015 CO: 30% by 2020 NC: 12.5% by 2021

  33. Financial Incentives for CCS

  34. Energy Efficiency Standards and Targets

  35. Hydraulic Fracturing Chemical Disclosure Map

  36. Public benefit funds Net metering programs allows costumers to sell electricity back to grid through electricity bills and/or utility charges Green Pricing GaPower optional: $5/100kwhr; green power w/ 50% solar; ~$50/month additional cost

  37. Appliance Efficiency Standards

  38. Residential Building Energy Codes

  39. Commercial Building Energy Codes

  40. State Building Efficiency Requirements

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