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Business Council for Federal Policy Committee Strategy Meeting July 15, 2008 Offices of Pacific Gas & Electric Washington, DC

Agenda Strategy Meeting Objectives 10:00 10:10 AM Review of Antitrust Guidelines 10:10 10:15 AM Federal Policy Priorities & Strategy 10:15 12:50 PM Legislative Development Clean Energy Jobs SAIC Modeling Project Campaign Outreach/Transition EPA Rulemakings Apollo Alliance Plan Review of Outcomes & Action Items 12:50 1:00 PM

Meeting Objectives Identify policy priorities for Council s s federal advocacy for remainder of 2008/Campaign Outreach/Transition

Overview of Recent Federal Policy Committee Activity Subgroups: Energy Efficiency Offsets Renewables/Clean Energy Clean Energy Jobs Campaign Outreach

Developed Policy Papers on S2191: Energy Efficiency Offsets Renewables/Clean Energy And Clean Energy Technology Deployment Path Document

Energy Efficiency Worked with member companies, organizations, others on energy efficiency amendment (ASE, ACEEE, WalMart, Johnson Controls, NAIMA, Calpine, NRDC, etc.) Met with Senate staff (Bayh, Feinstein, Snowe, Pryor) Resulted in Feinstein/Snowe amendment on energy efficiency

Offsets Worked with coalition of coalitions to design series of briefings Worked closely with Senator Stabenow s s office on hearing/amendment Submitted written testimony for Senate Agriculture Committee hearing on offsets Submitted Perspective on Nicholas Institute Paper on offsets Submitted responses to GAO Questionnaire Congressional briefing on offsets as cost containment mechanism Resulted in Stabenow Amendment on offsets

Clean Energy/Renewables Lobbied in support of Klobuchar amendment for 4% set-aside Lobbied in support of output-based allocation Resulted in Carper Amendment on output-based allocations 4% set-aside included in Boxer substitute

Clean Energy Technology Deployment Path Complementary Policies: Renewable Electricity Standard Energy Efficiency Resource Standard Energy Efficiency Savings Programs R&D Brought document to all meetings R&D portions identified for House Science Committee Updated FPC members on congressional activity on tax measures and appropriations

Face of Green Jobs Capitol Hill Day Event and Reception Two dozen Council members participated 21 congressional office meetings Four meetings with Members of Congress: Senator Klobuchar (D-MN) Senator Bayh (D-IN) Congressman Markey (D-MA) Congressman Gordon (D-TN)

June 19 Testimony House Energy and Commerce Committee Hearing: Legislative Proposals to Reduce Greenhouse Gas Emissions: an Overview

Ongoing Communications and Meetings with Targeted House and Senate Offices

Federal Policy Committee has also met with: Reid Harvey, Branch Chief of EPA s Climate Change Division Leslie Cordes, EPA re: Waste Energy Survey Maurice LeFranc, EPA re: Agency s s work on offsets Mark Elias, Perkins Coie re: Lobbying Disclosure Requirements

Congressional Briefings Offsets as cost containment mechanism State and regional GHG initiatives California AB32 scoping plan July 29

Review of Senate Legislation Boxer Substitute (S3036) to Lieberman Warner (S2191) released in May Bill brought up on Senate Floor June 2 Motion to Proceed to S2191 Passed 74-14 Cloture Vote Failed 48-36

Review of Boxer Substitute Some mention of output-based allocations (LDC allocation to consumers) Improvements in energy efficiency (encouraging early investments in energy efficiency, better definition of efficiency s s role, SEAD) 4% set-aside of allowances for RE between 2012-2030, 1% from 2031-2050;sustainable 2050;sustainable energy program eliminated Offset program included, strict financial additionality included; potential for disqualification during a previously approved crediting period

Proposed Amendments to S3036 Senators Snowe (R-MA) and Feinstein (D-CA) -- package of energy efficiency provisions Carve out of LDC set-aside; building code incentives Senator Carper (D-DE) DE) Output-based allocation for fossil generators; New Entrant Set Aside that includes Renewables, Nuclear Senator Stabenow (D-MI) - Offsets Senator Sanders (I-VT) Renewable Electricity Standard Senator Menendez (D-NJ) 2 percent allocation to states for Renewables and Energy Efficiency National Solar Roofs Program Landrieu (D-LA) Natural Gas Regulations

Current Status of Legislation Senate Legislative Action Done for the Year/Senate EPW May Hold Hearings House E&C Hearings this Summer House E&C staff drafting legislation

Opportunities for Advancing BCSE Issues Current Attention on House Side Continue Meetings with House E&C Staff Continue Congressional Briefings Continue Meeting With Targeted Senate Offices Update Policy Papers

Issue: Output-based Allocations Senator Carper (D-DE) DE) Identify champion Meetings with Members of Energy and Commerce Committee Position Paper

Issue: Renewables/Clean Energy Update Position Paper Meetings with Members of House Energy and Commerce Committee Check Back with Senator Klobuchar

Issue: Energy Efficiency Update Position Paper Meetings with Member of Energy and Commerce Committee Check in with Senate Champions Coordinate with working group on energy efficiency

Issue: Offsets Update Position Paper Meetings with Energy and Commerce Committee Check in with Senator Stabenow s s office Reconvene coalition of coalitions

Clean Energy Technology Deployment Path Document Key piece of June 19 Congressional testimony Identify champions in House Discuss with campaigns Organize outreach events/pr in conjunction with release of SAIC modeling in fall and early 2009

Action Items: Analysis of Senate Legislation August Analysis of Expected House Bill September Revise Policy Papers to Reflect House Bill when it is introduced

Clean Energy Jobs Developed Fact Sheets -- Member Profiles -- Overview of Studies Capitol Hill Day Response to Members Requests -- Udall (D-CO), Stabenow (D-MI)

SAIC Modeling Project Modeling increases in energy efficiency and renewable energy sufficient to meet energy demand between now and 2030 Show impacts on electricity and natural gas prices and greenhouse gas emissions Working with BCSE members to better understand how NEMS model clean energy industry Use study to highlight deficiencies and improvements that can be made to NEMS Preliminary results in August/September 2008

Campaign Outreach Revise Policy Documents for Campaigns Formal letter sent to Senator Obama and Senator McCain Arrange meetings with Obama and McCain Campaigns

Transition Activities Be ready to start engaging with new Administration immediately following November elections. Meet with: White House CEQ White House Chief of Staff Administrator of EPA Secretary of Energy, Assistant Secretary for Energy Efficiency and Renewable Energy Others

EPA Rulemakings ANPR on Regulating GHG (at OMB) GHG Reporting Rule (proposed in September 2008) Waste Energy Rule (Final in September 2008) Climate Leaders Offset Guidance (no formal comment) Rule on carbon sequestration under the SDWA

The New Apollo Alliance Energy Program The Apollo Alliance, a coalition of labor, business, community and environmental leaders, proposes a national economic development strategy to accelerate the development of America s s vast clean energy resources. Draft out in late July 2008 Seek BCSE support

Review of Outcomes & Action Items