Transcript Dickerson SNCR

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
RGGI Inventory
State
• Own allowances to cover
emissions
• Reduce emissions
• Credits from offset projects
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
Owning allowances
Each state sets fraction to auction (>25%)
MD ~100% allowance auction
Allocations for
new generation
economics [PPA terms]
renewables
Auctions
Four RGGI-wide auctions/year (2 in 2008)
First auction announced – Sep 25
2009 compliance year allowances
Reserve price $1.86
12,565,387 allowances on auction
MD placed 5,331,781 allowances on auction
Not all states are participating – regs not in place
MD regs final
authorize: trading program, auction
Next auction in Dec
Auctions
Uniform price, sealed bid, one round format
Bids are in blocks of 1,000 allowances
Can’t bid for more than 25% of allowances
Demand < supply
Allowances sell at reserve price
Demand > supply
Allowances sell at marginal price
MEA recipient of MD net revenues
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.
Two major initiatives
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
Working Groups
• Scientific and Technical
– UM lead
• Greenhouse Gas and Carbon Mitigation
– MDE lead
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Agriculture, Forestry and Waste Management
Cross Cutting
Energy Supply
Residential, Commercial and Industrial
Transportation and Land Use
• Adaptation and Response
– DNR lead
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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?