Transcript AJH (presentation for seminar in San Diego, CA)_ArtH_ThursAm

Global Warming, Green
Energy and Business
Opportunities for Tribes
National Tribal Forum
On
Air Quality
Annual Conference 2008
Arthur J. Harrington
Godfrey & Kahn, S.C.
780 North Water Street
Milwaukee WI 53202
Overview
• Need for tribal leadership on climate
change.
• Efforts by states and regions and potential
federal legislation.
• Development of sustainability programs.
– Determining baseline/carbon foot print.
– Identifying reductions.
– Working toward energy self-sufficiency.
– State and federal grants/incentives.
– Marketing benefits for tribal businesses.
Need for Tribal Leadership
• Impacts of climate change.
– On world as a whole.
– On tribal ways of life.
– On poorest groups.
• Lack of federal leadership.
• Efforts by states and regional groups
creating opportunities for tribes.
Quick Start Guide: A brief summary of the
climate change challenge
No debate:
500,000 years
of CO2 at +/280 ppm has
increased to
390 ppm in the
past 100 years
U.S. CO2 Emissions Sources
Agriculture
7%
Landfills
4%
Electricity
Buildings
32%
8%
Industrial
23%
Transportation
26%
Global Warming Potential
(by GHG type)
Carbon dioxide is 85% of U.S. GHGs, but...
Carbon dioxide (CO2)*
Methane (CH4)
Nitrous Oxide (N2O)
Hydrofluorocarbons (HFCs)
Perfluorocarbons (PFCs)
Sulfur hexafluoride (SF6)
1
21
310
1,300 to 11,700
6,500 to 9,200
23,900
U.S. = 5% of world population, but 28% of world
GHGs (Scientific American, Sept. 2006)
The Cost-Benefit of Climate
Solutions
• The Stern Report (U.K.) concludes…
– The cost of doing nothing could reach 20% of
gross global product (GGP) by 2050, resulting
in the worst economic depression in history.
– But the cost of action to reduce GHGs is likely
to be no more than 1% of GGP in the same
timeframe
The Benefit of Climate Solutions
• In California by 2020 the implementation of the state’s
Climate Action Plan will result in a net increase of…
– 83,000 new jobs
– $4 billion annual income
• A comparable investment in low-carbon, energyefficiency nationwide…
– 1.4 million new jobs by 2025 in the U.S.
– Average saving of $1275/year per U.S. household
(Redefining Progress 2004; CA Climate Action Plan 2005)
Delay in Federal Leadership
• No implementation of Kyoto protocol.
• Delay in consideration of climate change
legislation.
• But, potential passage of cap-and-trade
legislation this year.
State and Regional Initiatives
• California AB 32.
• Similar laws and executive orders in other
states.
• Climate change task forces in numerous
states.
– Forest County Potawatomi Community
leadership in Wisconsin task force.
• RGGI, Western Climate Initiative, and
MGA Accord.
Development of Carbon Reduction
Markets
• Under potential federal cap-and-trade
program.
• Under RGGI, Western Climate Initiative,
and MGA Accord.
• Will provide significant incentives for
reductions/sequestration of greenhouse
gases and significantly increase costs of
traditional energy.
U.S. Emissions Trajectory
8000
7000
2000
6000
MMtCO2e (Net)
1990
5000
4000
Goals and actions patterned after leadership states
3000
Additional federal actions (aviation, ODS substitutes, etc.)
2000
Emissions after actions
1000
0
1990
1995
2000
2005
2010
2015
2020
GHG Reduction Cost Curve
Corporate Commitments and
Results
10% reduction
“It’s made us
more competitive”
QuickTime™ and a
10% reduction
$650 million
saved
TIFF (Unc ompressed) decompres sor
are needed to see this picture.
Absolute cap
69% reduction
$2 billion saved
25% reduction
$100 million saved
65% reduction
$791 million saved
13% reduction
6% reduction
Carbon Markets Already Exist
• Chicago Climate Exchange.
• The Climate Registry.
• Individual purchases of greenhouse
reductions/sequestrations.
– To meet offset requirements.
– For green marketing.
• Renewable energy credits.
Chicago Climate Exchange
• Voluntary, private organization, whose
membership includes leading companies,
universities, municipalities, etc.
• National leadership opportunity.
• Members make legally-binding commitment to
cap and slowly reduce emissions to 6% below
2001 levels by 2010.
• Members can buy and sell reduction
credits.
CCX Exchange Participant
Membership
• Exchange participants are not subject to
the CO2 reduction schedule.
• Because of this, exchange participant
membership would not provide the same
national recognition as full membership.
• Tribes could purchase and retire credits to
reduce their “carbon footprint.”
CCX Off-Set Projects
• CCX allows certain greenhouse gas reduction
projects to generate credits that can be sold into
CCX market.
• For example, new buildings to qualify as carbon
off-set projects depending upon their energy star
rating.
• Off-set projects generate credits based on their
CO2 reductions.
Potential Forestry CCX Off-Set
Projects
• Carbon off-sets can be generated from
forestation and forest enrichment projects,
as well as forest conservation if it is
adjacent to and in conjunction with
forestation.
• Requires long-term commitment,
sustainable management, and
independent verification.
Climate Registry
• Collaboration of more than 40 states and
provinces, as well as tribes (Campo Kumeyaay
Nation, Pueblo of Acoma, and Southern Ute
Indian Tribe).
• The Climate Registry is developing and
managing a common greenhouse gas reporting
system.
• Benefits of joining include national recognition
(on par with states and provinces) and reduced
costs in developing own GHG reporting
and reduction policies.
Renewable Energy Credits
• Certified renewable energy.
• Creates additional value from renewable
energy projects.
• Many states with RPS standards.
• In other states can certify renewable
energy and sell RECs.
Renewable Portfolio Standards
*WA: 15% by 2020
MN: 10% by 2015 Goal +
Xcel mandate of
1,125 MW wind by 2010
MT: 15% by 2015
VT: RE meets load
growth by 2012
WI: requirement varies by
utility; 10% by 2015 Goal
ME: 30% by 2000;
10% by 2017 goal - new RE
MA: 4% by 2009 +
1% annual increase
RI: 15% by 2020
CT: 10% by 2010
CA: 20% by 2010
☼ NV: 20% by 2015
☼ NY: 24% by 2013
IA: 105 MW
☼ CO: 10% by 2015
IL: 8% by 2013
☼ NJ: 22.5% by 2021
☼ PA: 18%¹ by 2020
*MD: 7.5% by 2019
☼ AZ: 15% by 2025
*NM: 10% by 2011
*DE: 10% by 2019
☼ DC: 11% by 2022
TX: 5,880 MW by 2015
HI: 20% by 2020
☼ Minimum solar or customer-sited requirement
* Increased credit for solar or customer-sited
¹PA: 8% Tier I, 10% Tier II (includes non-renewable sources)
State RPS
State Goal
SWH eligible
Development of Sustainability
Programs to Reduce Footprint
•
•
•
•
•
Determining baseline/carbon footprint.
Identifying reductions.
Working towards energy self-sufficiency.
State and federal grants/incentives.
Marketing benefits for tribal businesses.
Addressing Tribe’s Carbon Profile
• Reasons to do this:
– Environmental – be part of global warming
solution.
– Public relations – leadership position on
climate change.
– Cost savings – energy efficiency efforts can
reduce costs.
Determining Baseline/Carbon
Footprint
• Sources of greenhouse gas emissions.
– Electrical energy usage.
– Natural gas/propane usage.
– Use of transportation fuels.
– Other sources.
• Existing sequestration/reductions.
– Forestry.
– Low-till farming.
– Existing energy efficiency and green energy.
Energy and Other Audits
• Audits of energy usage:
– Identify energy usage and existing
efficiency/green energy.
– Identify opportunities and targets for energy
reduction and green energy development.
– Often can be funded by public benefits
programs.
• Other audits:
– Carbon sequestration (existing and
opportunities).
Examples of Opportunities for
Reductions/Sequestration
• Electrical energy usage (public benefits
often will help fund capital projects).
• Heating systems.
• Transportation systems.
• Community water systems and
wastewater treatment.
• Forestry and agriculture.
Agriculture and Forestry
• Key areas
– Forest protection: Prevent CO2 losses from deforestation
– Forest establishment and restoration: Increase carbon
sequestration through new forest growth
– Forest management: Improve forest management to
increase carbon sequestration
– Agricultural practices: Reduce GHG emissions from
agricultural practices and increase carbon sequestration in soils
– Agricultural land use management: Prevent CO2 losses
from land use changes (cultivation of grasslands/grazing lands)
– Production of bioenergy feedstocks: Increase production
of biomass used in bioenergy sources
Green Energy Opportunities
• Based on specific characteristics of
reservation.
– Wind.
– Sun.
– Biomass.
• Incentives for renewable energy.
– Production tax credit/investment tax credit.
– RECs/RPS.
– Carbon reduction credits.
Specific Tribal Advantages
regarding Green Energy
• Control regarding siting issues.
• Accelerated depreciation.
• Employee tax credits.
Long-Term Advantages of
Renewable Energy Development
• Ability to hedge against increases in costs
of traditional energy.
– Low or no cost fuel inputs.
• Avoidance of carbon costs associated with
traditional energy.
• Ability to develop energy self-sufficiency.
State and Federal
Grants/Incentives
• State public benefits funds.
• Federal grants/incentives.
–
–
–
–
EPA Partnership Programs
EPA Sector Strategies Program
EPA Green Buildings Program
Department of Energy
• Tribal Energy Program
• Energy Efficiency and Renewable Energy
– Department of Commerce
• Economic Development Administration
• Minority Business Development Agency
– Small Business Administration
• Entrepreneurial Development
Marketing Benefits for Tribal
Businesses
• Green marketing of tribal casinos and
other businesses.
• New casinos are offsetting construction
emissions (Diamond Joe in Iowa) or LEED
certified (St Regis Mohawk in New York).
• Focus customers on tribal leadership in
protecting environment.
Supply Chain Initiatives
• In addition to addressing their own carbon
footprint, tribes can ask their vendors to
join in.
• Request greenhouse gas reductions
based on amount of purchases by tribe.
– E.g., one pound of CO2 for every dollar.
– Vendors could meet by own reductions
or purchase of verified credits.
Supply Chain Initiatives continued
• Godfrey & Kahn green office example
– Energy Star equipment
– Electronic instead of paper communications
– Sleep settings on computers and printers
– Double-sided printing and copying
– Increased recycling
– Incentives to receive electronic
instead of paper periodicals