Lieberman-Warner Plan Unveiled

Lieberman-Warner Plan Unveiled

Posted by The Cunctator on Thursday, August 02, 2007

Sens. Lieberman and Warner have unveiled the skeleton of their cap-and-trade legislation, America’s Climate Security Act.

Cap

“The bill will specify an annual aggregate tonnage cap, expressed in terms of Co2 equivalence, for each year from 2012 through 2050. The cap that the bill will specify for 2012 will be the 2005 emissions level.” And: 10% below 2005 by 2020, 30% by 2030, 50% by 2030, 70% by 2050.

Allowances

• Each year 20% of that year’s National Emission Allowance Account for free to covered entities within the industry sector.
• In 2012 20% of the NEAA will be allocated to the electric power sector. A portion of that 20% will be free to new entrants to the electric power sector. The allocation will be at 20% from 2012 – 2017, then transition to 0% by 2035.
• 10% will be allocated to load-serving entities to defray energy-cost impacts on low- and middle-income consumers and to promote demand-side energy efficency, some of it for free to rural electric cooperative facilities.
• 8% will be allocated to covered entities who have taken pre-enactment action to reduce greenhouse gas emissions. That 8% will transition to 0% by 2020.
• Each year 4% will be allocated to state governments, half based on population, half on historical state emissions.
• Each year 4% will be allocated to US coal mines.
• Each year 7.5% will be allocated to farmers, foresters, and other landowners to store carbon in soils, crops, and forests.
• Each year 2.5% will be allocated to the transportation sector.

Allowances for Auction

• 24% in 2012 will go to auction under the aegis of the Climate Change Credit Corporation; rising to 52% by 2035.

Auction Proceeds

• 20% for a public-private partnership for power-sector technologies including CCS
• 20% for public-private partnership for CCS
• 20% for transportation sector technologies and reducing miles traveled
• 10% for environmental mitigation
• 10% for SO2, NOx, mercury emission reduction from coal plants
• 10% to state and local for low-income community mitigation
• 10% for international mitigation

CCS

CCS regulations and a legal framework for the Federal assumption of liability for geological storage will be proposed by a study group within two years of enactment.

Carbon Market Efficiency Board, Banking

• Up to 15% of the allowances a covered entity must submit may be comprised of borrowed allowances, with an interest rate set by the Board.
• Up to 15% of the allowances that a covered entity must submit may be comprised of offset credits.
• Up to 15% of the allowances that a covered entity must submit may be comprised of allowances purchased on a certified foreign greenhouse gas emissions trading market.
• the Board may increase the number of emissions credits if the average daily closing price of an emissions credit exceeds the upper end of the range predicted by the CBO prior to the start of the program.
• The Board may adjust the terms and interest rates of the emissions loans “as needed to avoid significant harm to the economy” and “in the event of more extreme economic circumstances” to raise the cap temporarily provided that subsequent year’s caps are tightened so that cumulative reductions are unchanged.

Offsets

“The bill will set forth detailed, rigorous requirements for offsets, with the purpose of ensuring that they will represent real, additional, verifiable, and permanent emissions reductions.”

Foreign Tariffs

The President will be authorized to require that importers of GHG-intensive products submit emissions allowances of a value equivalent to that of the allowances that the US system effectively requires of domestic manufacturers, if it is determined that nation has not taken commensurate action to reduce GHG emissions.

Climate Change Early Actions

The early actions final report from the air resources board was released on October 12th.

These measures will become part of the State’s comprehensive strategy for achieving greenhouse gas (GHG) reductions under the California Global Warming Solutions Act of 2006. The Act requires ARB to identify a list of “discrete early action greenhouse gas reduction measures” by June 30, 2007 (Health and Safety Code section 38560(a)). Once on the list, these measures are to be developed into regulatory proposals, adopted by the Board, and made enforceable by January 1, 2010.

The report can be downloaded here

Discrete Early Action – Greenhouse gas reduction measure underway or
to be initiated by ARB that meets the AB 32 legal definition as
identified by the Health and Safety Code Section 38560.5. Discrete
early actions are regulations to reduce greenhouse gas emissions
adopted by the Board and enforceable by January 1, 2010.
Early Action – Greenhouse gas reduction measures underway or to be
initiated by ARB in the 2007 – 2012 timeframe. These measures may
be regulatory or non-regulatory in nature.

Important Dates for the Climate Change Scoping Plan

Climate Change Scoping Plan Workshops - Save the Dates

The California Air Resources Board (ARB) is starting to develop the Scoping Plan mandated by the Global Warming Solutions Act of 2006 (AB32). We are establishing a workshop schedule and are asking stakeholders to save the following dates:

On November 30, 2007, ARB will hold a public workshop to explain the Scoping Plan process and schedule, and to initiate a discussion about the structure of the Scoping Plan such as how commitments should be designed, cost-effectiveness methodologies, and other basic elements of the Plan. This workshop will be held at the South Coast Air Quality Management District offices in Diamond Bar and will be webcast.

On December 14, 2007, ARB will hold a Sector-Based Workshop. Staff will provide an overview of the sectors responsible for the largest percentage of greenhouse gas emissions, and provide an overview of the staff's current thinking about potential emission reduction measures for the Scoping Plan. This workshop will be held at the Cal/EPA Headquarters Building in Sacramento and will be webcast.

In mid-January 2008, ARB will hold a Tools Workshop to discuss the various mechanisms that are available to achieve the 2020 emission reduction targets, including direct regulations, markets, voluntary actions, and incentives. The location for this workshop has not yet been finalized.

In late-March 2008, ARB plans to hold a Scenario Workshop to explore different emission reduction strategies. The staff will present different combinations of potential emission reduction measures and discuss preliminary analyses of the scenarios.

On January 16, 2008, ARB staff plans to release its proposed Scoping Plan.

In November 2008, the ARB is scheduled to consider the Scoping Plan.

For more information, please contact Robert DuVall at (916) 324-5930 or go to our Scoping Plan top page.

Response to the green bills signed by Schwarzenegger

Here's what some of the media have to say about the legislation package signed on Friday:

• a big hit among green investors was his Million Solar Roofs plan. The idea was that a $2.9 billion incentive plan targeting homeowners and building owners who install solar-electric systems would make way for 1 million solar roofs in California by the year 2018. read more

• "With statewide snow levels 71 percent below normal this year, the effects of climate change are not a concept of the future, they're a reality of today," said Laird. "Water conservation is the quickest, cheapest way to manage our water supply and address the impact of population growth and global warming."

  The bill would set new water flush volume standards by making use of existing high-efficiency toilet technology, including 111 toilet models produced by 24 manufacturers and 34 models of urinals produced by nine manufacturers. read more

• California homeowners looking to install solar water heaters will now receive assistance from a statewide rebate program. Gov. Arnold Schwarzenegger, R-Calif., has signed legislation to spend $250 million over the next 10 years on rebates for solar water heaters. The bill's authors hope the rebates will lead to the installation of 200,000 systems, the Associated Press reports. read more here
• and here
  

Governor Schwarzenegger Signs Legislation Promoting Solar Power, Energy and Water Efficiency

Governor Schwarzenegger today signed a package of legislation furthering his commitment to energy efficiency, conservation and pollution reduction.

“California is a world leader in improving technologies and promoting conservation while protecting our environment,” said Governor Schwarzenegger. “That is why I am pleased to sign this legislation that will protect our precious resources and continue to keep California at the forefront of energy and water efficiency.”

The Governor signed the following seven bills:

• AB 662 by Assemblymember Ira Ruskin (D-Redwood City) expands the authority of the California Energy Commission to set water efficiency standards for appliances.

• AB 1103 by Assemblymember Lori Saldaña (D-San Diego) requires electric utilities to maintain records of energy consumption data for all nonresidential buildings to which they provide service and requires building owners or operators to provide benchmarking data to prospective buyers, lessees or lenders beginning January 1, 2010.

• AB 1109 by Assemblymember Jared Huffman (D-San Rafael) enacts the California Lighting Efficiency and Toxics Reduction Act which prohibits the manufacturing for sale or the sale of certain general purpose lights that contain hazardous substances. In addition, the bill requires the California Energy Commission to adopt energy efficiency standards for all general purpose lights.

• AB 1406 by Assemblymember Jared Huffman (D-San Rafael) adds condominiums to the meaning of “structure” with respect to the use of recycled water for toilet and urinal flushing.

• AB 1470 by Assemblymember Jared Huffman (D-San Rafael) creates the Solar Water Heating and Efficiency Act of 2007 which provides incentives to attain the goal of installing 200,000 solar water heating systems in the state by 2017.

• AB 1481 by Assemblymember Hector De La Torre (D-South Gate) creates a uniform, statewide permitting process for landscape irrigation uses of recycled water, such as parks, playgrounds and golf courses, by requiring the State Water Resources Control Board to adopt a statewide general water quality permit.

• AB 1560 by Assemblymember Jared Huffman (D-San Rafael) requires the California Energy Commission to incorporate standards for water efficiency and conservation into the existing building standards governing energy efficiency.

The Governor has made energy efficiency and protecting the environment a top priority in his administration. In December 2004, he signed Executive Order S-20-04 creating his “Green Building Initiative,” calling for the state to lead the way in designing, operating and re-engineering its buildings to make them the most resource-efficient, energy-efficient and healthful public buildings in the nation.

To achieve his ambitious goals, Governor Schwarzenegger created the Green Action Team, a Cabinet-level group working to implement the Green Building Initiative. Led by State and Consumer Services Agency Secretary Rosario Marin, the team’s goal is to oversee and direct the State’s efforts. The Green Building Initiative will reduce carbon emissions by 500,000 metric tons by 2010 and 1.8 million metric tons by 2020.

The Executive Order calls for the State to reduce its electricity demand by 10 percent by 2010 and by 20 percent by 2015. California is also actively working to deploy fuel cell, wind and biomass solutions.

So far, nine California state government buildings, with more than 2 million sq. feet, are Leadership in Energy and Environmental Design (LEED) certified through the U.S. Green Building Standard. More than 100 buildings (5 million sq. ft.) are currently planned and budgeted for LEED Silver certification.

All new, renovated and built-to-suit leased state buildings will meet LEED standards. California is also making substantial upgrades to the state’s older buildings to reduce their energy use by replacing HVAC system, installing new lighting and other improvements.

Last year, Governor Schwarzenegger signed legislation to complete his Million Solar Roofs Plan to provide 3,000 megawatts of additional clean energy and reduce the output of greenhouse gases by 3 million tons, equivalent to taking one million cars off the road. The $2.9 billion incentive plan for homeowners and building owners who install solar electric systems will lead to one million solar roofs in California by the year 2018.