regional greenhouse gas initiative: states progress on nation’s first carbon cap-and-trade program...
TRANSCRIPT
Regional Greenhouse Gas Initiative:States Progress on Nation’s First Carbon
Cap-and-Trade Program
Franz LitzClimate Change Policy CoordinatorNew York State Department ofEnvironmental Conservation
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• A Note on the Science
• Understanding What’s at Stake for New York
• Brief Background on RGGI
• Latest RGGI News: Allocations
Overview
Climate Science
We know enough to act now
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“The scientific understanding of climate change is now sufficiently
clear to justify nations taking prompt action.”
Joint National Academies of Science Statement
June 2005
Climate Impacts
Understanding What’s at Stake
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• The warming is already evident:– Annual average temp up 2°F since 1970; – Winter average temp up 4°F since 1970.
• This temperature increase is correlated to already observed changes in our region’s climate
• Changes projected for the future are more dramatic.
A Changed Northeast Climate
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Fewer Days with Snow Cover
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The Nation’s First Mandatory
Cap-and-Trade Program for Carbon Dioxide
Launch Date: Jan. 1, 2009
Regional Greenhouse Gas Initiative
• April 2003 Invitation • 3 Year Design
Process• December 2005
Memorandum of Understanding (7 States)
• Model Rule Complete• MD & MA to Join
Background
• 39.4 million people—(13% of US Population)
•9% of U.S. Emissions
•11th largest emitter in the world
• $1.8 trillion economy (15% of U.S.)
The Region at a Glance
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• Stabilize emissions at current levels through 2014;
• then reduce by 10% by 2019
• ~13% below 1990 levels
• ~35% below business as usual
Reduction Requirements
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• Firing Biomass/Biofuel a “control” method• Offsets “Valve”• Offsets—5 Initial Types:
– Natural Gas, Propane, Heating Oil Efficiency;– Land to Forest;– Landfill Gas Capture & Combustion;– Methane Capture from Animal Operations; &– SF6 Leak Prevention.
• Recognition of International Currencies
RGGI Innovations
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• Allocations– States agreed to propose minimum 25%
public benefit allocation in MOU– New York proposal—100% auction
• Deregulation means consumers bear cost of allowances even if they are given to generators at no cost
• Benefits of program will inure to the consumers through investments in energy efficiency and clean energy technology
– Vermont will also do 100% auction; Others?
RGGI Innovations
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Emissions Market Drives Creative Solutions
• Carbon price will promote:
– reduction in fossil fuel consumption
– non-emitting electric generation
– development of abatement technologies
– innovation yet unknown
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• Complete RGGI Implementation
• Bring Maryland On
• Bring Massachusetts On
• Add Additional States—RI, PA?
• Link to California? Others in West Coast AZ, NM, OR, WA?
• Address Imports of Electricity
RGGI Next Steps
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• MOU among RGGI States Welcomes Participation by Additional States
• RGGI + California =– 24% of U.S. Population– 28% of U.S. Economy– 3rd Largest World Economy– 15% of U.S. Emissions– 6th Largest Emitter Worldwide
RGGI + California
