US GHG Policy: A Regulatory Update
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1 US GHG Policy: A Regulatory Update Aimee Barnes, Manager, US Regulatory Affairs EcoSecurities Group plc Latin American Carbon Forum Lima, Peru September 6 th, 2007
2 How is US GHG policy taking shape? > State California Other state actions > Regional Regional Greenhouse Gas Initiative Western Climate Initiative > Federal
3 State Initiatives: California > GHG Targets in California established by AB 32 Assembly Bill 32 the first of its kind in the U.S. Reduce to 1990 emission levels by 2020; regulation begins in 2012 Bill language does not explicitly require cap-and-trade Disagreement amongst governor s office, state agencies, on how best to achieve GHG targets
4 > State Agencies involved in implementation: California Air Resources Board (CARB) Market Advisory Committee (MAC) California s AB 32 Economic & Technology Advancement Advisory Committee (ETAAC) California Public Utilities Commission (CPUC) California Energy Commission (CEC) Governor s Climate Action Team (CAT)
5 > California regulators wary of market mechanisms > Offsets/C&T a sensitive issue in California > CA joined the Western Climate Initiative (WCI) AB 32: Considerations California s recommendations likely to influence other states, and federal legislation
6 > Legislated Economy-Wide Caps Other State Action Hawai i and New Jersey have followed in California s footsteps > Climate Action Plans Complete 8 States > Climate Action Plan underway 11 states > WCI Members 6 states > RGGI Members 10 states State action is fragmented without a federal program
7 The Regional Greenhouse Gas Initiative 10 States joined with PA observing: NY, MD, MA & NJ have largest allocations Cap is held steady at baseline ( avg.) through 2014, then reduced by 10% by 2018; First 3-year compliance period begins Jan 1, 2009 Offsets allowed up to 3.3% of any entity s compliance budget Allowance prices trigger safety valves which increase scope and % of eligible offsets
8 RGGI s west-coast equivalent The Western Climate Initiative Recently released GHG reduction goals for individual states Overall reductions equal to 15% below 2005 levels by 2020 Likely to be a cap-andtrade system So far, little opportunity for stakeholder input Guidelines to be drafted within the next year
9 Proposed Federal GHG Bills
10 Federal Initiatives > ~10 federal climate bills have been proposed to Congress Vary in scope, point of regulation, treatment of offsets, linkages, etc., but none has taken hold Estimates for passing US policy range from > But, serious national cap-and-trade compliance legislation slated for debate this fall > The current focus: The Lieberman-Warner Proposal Not a bill; a proposal to reconcile points from all existing bills into one plan Comments currently being accepted from various stakeholders Proposal to be converted into legislation and brought in front of Congress this Fall Senator Boxer, Chair of Environment and Public Works Committee, plans to use the Lieberman-Warner bill as a starting point to discuss climate policy
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12 For More Information Aimee Barnes, Manager, US Regulatory Affairs ph: projects in 30+ Countries New York Paris* Madrid* Dublin Oxford The Hague 2 Offices in China - Beijing - Chengdu Manila Los Angeles Mexico City Rio de Janeiro Santiago de Chile Casablanca* Dubai Karachi* Johannesburg* Mumbai Bangkok Kuala Lumpur Jakarta EcoSecurities is a world leader in international and domestic carbon offsets
Policy to Reduce US Greenhouse Gas Emissions American Chemical Society Briefing Washington DC June 4, 2008
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