Transcript Major New York State Climate Change Policies

Regional Greenhouse Gas Initiative:
States Progress on Nation’s First Carbon
Cap-and-Trade Program
Franz Litz
Climate Change Policy Coordinator
New York State Department of
Environmental Conservation
Overview
• A Note on the Science
• Understanding What’s
at Stake for New York
• Brief Background on RGGI
• Latest RGGI News: Allocations
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Climate Science
We know enough to act now
Joint National Academies of
Science Statement
June 2005
“The scientific understanding of
climate change is now sufficiently
clear to justify nations taking
prompt action.”
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Climate Impacts
Understanding What’s at Stake
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Visit http://www.northeastclimateimpacts.org/
A Changed Northeast Climate
• 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.
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Fewer Days with Snow Cover
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Regional Greenhouse
Gas Initiative
The Nation’s First
Mandatory
Cap-and-Trade Program
for Carbon Dioxide
Launch Date:
Jan. 1, 2009
Background
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April 2003 Invitation
3 Year Design
Process
December 2005
Memorandum of
Understanding
(7 States)
Model Rule Complete
MD & MA to Join
The Region at a Glance
• 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.)
Reduction Requirements
• Stabilize emissions at current levels
through 2014;
• then reduce by 10% by 2019
• ~13% below 1990 levels
• ~35% below business as usual
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RGGI Innovations
• Firing Biomass/Biofuel a “control” method
• Offsets “Valve”
• Offsets—5 Initial Types:
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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
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RGGI Innovations
• 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?
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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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RGGI Next Steps
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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
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RGGI + California
• 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
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Franz Litz
Climate Change Policy Coordinator
NY Dept. of Environmental Conservation
[email protected]
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