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MGA Overview Presentation

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MGA Overview Presentation

  1. 1. Overview of Greenhouse Gas Reduction Accord and Energy Security and Climate Stewardship Platform
  2. 2. <ul><li>12 States </li></ul><ul><ul><li>Illinois </li></ul></ul><ul><ul><li>Indiana </li></ul></ul><ul><ul><li>Iowa </li></ul></ul><ul><ul><li>Kansas </li></ul></ul><ul><ul><li>Michigan </li></ul></ul><ul><ul><li>Minnesota </li></ul></ul><ul><ul><li>Missouri </li></ul></ul><ul><ul><li>Nebraska </li></ul></ul><ul><ul><li>North Dakota </li></ul></ul><ul><ul><li>Ohio </li></ul></ul><ul><ul><li>South Dakota </li></ul></ul><ul><ul><li>Wisconsin </li></ul></ul>12-State MGA Footprint plus Manitoba and Ontario
  3. 3. Governors’ First Steps <ul><li>Co-chairs: WI Gov. Jim Doyle (D) and MN Gov. Tim Pawlenty (R) </li></ul><ul><li>Milwaukee, WI -- November 14-15, 2007 </li></ul><ul><li>Funding from Joyce Foundation </li></ul><ul><li>Three stakeholder advisory groups developed recommendations: Power Sector, Bioeconomy & Transportation, and Carbon Markets </li></ul><ul><li>Establishment of Accord and Platform </li></ul>
  4. 4. <ul><li>Midwestern version of RGGI and WCI </li></ul><ul><li>IA, IL, KS, MI, MN, WI & Province of Manitoba as full signatories </li></ul><ul><li>IN, OH, SD and Province of Ontario as observers </li></ul>Midwestern Greenhouse Gas Reduction Accord
  5. 5. Map Source : www.pewclimate.org States Covered by GHG Accords = 50% of population + > 50% of GDP
  6. 6. <ul><li>Establishes GHG reduction targets and timeframes </li></ul><ul><li>Develop a market-based and multi-sector cap-and-trade mechanism to help achieve GHG reduction targets </li></ul><ul><li>Establishes a advisory groups composed of representatives from the public, private, non-governmental institutions to make recommendations to jurisdictional leaders </li></ul>Accord
  7. 7. July 2008 – Establish targets for GHG emission reductions November 2008 – Complete development of proposed Cap & Trade agreement and model rule July 2010 – “Complete the undertakings ” Accord Timeline
  8. 8. Plans Established Jan. ‘09: Compliance Date Jan. ‘09: Adopt Scoping Plan Aug. ‘08: Projected Model Date Announced Nov. ‘08: Projected Model Date Announced RGGI California WCI Accord
  9. 9. Accord Sub-groups <ul><li>Scope </li></ul><ul><li>Target-Setting, Data & Reporting </li></ul><ul><li>Modeling </li></ul><ul><li>Allowances </li></ul><ul><li>Offsets </li></ul>
  10. 10. Accord Stakeholders <ul><li>3M </li></ul><ul><li>Alcoa Inc. </li></ul><ul><li>Archer Daniels Midland Company </li></ul><ul><li>BP America </li></ul><ul><li>Clean Wisconsin </li></ul><ul><li>CMS </li></ul><ul><li>ConocoPhillips </li></ul><ul><li>Core Energy </li></ul><ul><li>Energy Development Initiative </li></ul><ul><li>Environment Illinois </li></ul><ul><li>Environment Ohio </li></ul><ul><li>Illinois AFL-CIO </li></ul><ul><li>Iowa Farm Bureau </li></ul><ul><li>Izaak Walton League of America </li></ul><ul><li>Kansas State University </li></ul><ul><li>Kansas Corporation Commission </li></ul><ul><li>Manitoba Hydro </li></ul><ul><li>Manitoba Science, Technology, Energy and Mines </li></ul><ul><li>Michigan Dept. of Environmental Quality </li></ul><ul><li>Midwest Generation LLC </li></ul><ul><li>Minnesota Chamber of Commerce </li></ul><ul><li>Missouri River Energy Services </li></ul><ul><li>National Wildlife Federation </li></ul><ul><li>NewPage Corporation </li></ul><ul><li>North Dakota Dept. of Agriculture </li></ul><ul><li>North Dakota Farmers Union </li></ul><ul><li>NRDC Midwest Program </li></ul><ul><li>NSP-Minnesota </li></ul><ul><li>Office of Gov. Blagojevich </li></ul><ul><li>Office of Gov. Pawlenty </li></ul><ul><li>Office of Gov. Daniels </li></ul><ul><li>South Dakota Dept. of Environment and National Resources </li></ul><ul><li>State of Wisconsin Dept. of National Resources </li></ul><ul><li>The Dow Chemical Company </li></ul><ul><li>The Land Institute </li></ul><ul><li>The University of Iowa </li></ul><ul><li>Western Michigan University </li></ul><ul><li>Wisconsin Public Power Inc. </li></ul>
  11. 11. Keys to Success <ul><li>Leadership from governors </li></ul><ul><li>Multi-sector approach </li></ul><ul><li>Advisory/stakeholder input </li></ul><ul><li>Participant and observer status </li></ul><ul><li>Potential for new jobs </li></ul><ul><li>Cap-and-trade plus parallel development of complementary policies </li></ul>
  12. 12. <ul><li>Accord is a part of broader energy initiative </li></ul><ul><li>Comprehensive in scope, integrated in approach and ambitious in its measurable goals and deliverables </li></ul><ul><li>Combined – Accord and Platform uniquely positions Midwest as leader in energy and climate issues </li></ul>Energy Security and Climate Stewardship Platform
  13. 13. <ul><li>Guiding Principles and Key Strategies </li></ul><ul><li>Measurable Goals, Objectives & Policy Options </li></ul><ul><ul><ul><ul><li>Efficiency </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Bio-based products and transportation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Renewable electricity; and </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Advanced coal with CCS. </li></ul></ul></ul></ul>Platform Elements
  14. 14. <ul><li>Energy Efficiency </li></ul><ul><li>Bioeconomy & Transportation </li></ul><ul><li>Renewable Electricity, Advanced Coal and Carbon Capture </li></ul>Advisory Groups
  15. 15. Platform Stakeholders <ul><li>Abengoa Bioenergy Corporation </li></ul><ul><li>Alliant Energy </li></ul><ul><li>American Council for an Energy-Efficient Economy </li></ul><ul><li>American Electric Power </li></ul><ul><li>American Wind Energy Association </li></ul><ul><li>Baxter Healthcare </li></ul><ul><li>Builders Association of Manitoba </li></ul><ul><li>CC 5-6 Technologies </li></ul><ul><li>Center for Energy & Environment </li></ul><ul><li>Centerpoint Energy Minnegasco </li></ul><ul><li>Chippewa Valley Ethanol Company </li></ul><ul><li>CHS Foundation Board </li></ul><ul><li>Citizens Utility Board </li></ul><ul><li>Clean Air Task Force </li></ul><ul><li>Clean Wisconsin </li></ul><ul><li>DTE Energy </li></ul><ul><li>Duke Energy </li></ul><ul><li>Ecology Center </li></ul><ul><li>Energy Advocate </li></ul><ul><li>Energy Center of Wisconsin </li></ul><ul><li>Environmental Law and Policy Center </li></ul><ul><li>General Motors Corporation </li></ul><ul><li>Government of Manitoba </li></ul><ul><li>Great River Energy </li></ul><ul><li>IBEW Local 2150 </li></ul><ul><li>ICM, Inc. </li></ul><ul><li>Illinois DCEO </li></ul><ul><li>Illinois Farm Bureau </li></ul><ul><li>Indiana Wildlife Federation </li></ul><ul><li>International Paper </li></ul><ul><li>Iowa Association of Municipal Utilities </li></ul><ul><li>Iowa Department of Public Safety </li></ul><ul><li>Iowa Environmental Council </li></ul><ul><li>Iowa Renewable Fuels Association </li></ul><ul><li>Iowa State University </li></ul><ul><li>Johnson Controls, Inc. </li></ul><ul><li>Kansas Geological Survey </li></ul><ul><li>Madison Gas & Electric Company </li></ul><ul><li>Manitoba Dept. of Energy, Science, and Technology </li></ul><ul><li>Manitoba Hydro </li></ul><ul><li>Medtronic, Inc. </li></ul><ul><li>Michigan Environmental Council </li></ul><ul><li>Michigan Office of Geological Survey </li></ul><ul><li>Michigan Municipal Electric Assoc. -Michigan Public Service Commission </li></ul><ul><li>Michigan State University </li></ul><ul><li>MidAmerican Energy Holdings Co. </li></ul><ul><li>Midwest Ag. Energy Network </li></ul><ul><li>MEEA </li></ul><ul><li>Midwest ISO </li></ul><ul><li>Minnesota Power </li></ul><ul><li>Minnesota Public Utilities Commission </li></ul><ul><li>OH Air Quality Development Authority </li></ul><ul><li>Ohio Dept. of Agriculture </li></ul><ul><li>Ohio State University </li></ul><ul><li>Plum Creek Timber Co. </li></ul><ul><li>Poet </li></ul><ul><li>Public Service Comm. Of WI </li></ul><ul><li>SD Utilities Commission </li></ul><ul><li>Sieben Energy Associates </li></ul><ul><li>SMMPA </li></ul><ul><li>State of Michigan </li></ul><ul><li>The Nature Conservancy </li></ul><ul><li>United Mine Workers of America </li></ul><ul><li>University of Dayton </li></ul><ul><li>University of Illinois </li></ul><ul><li>University of Minnesota </li></ul><ul><li>Virent Energy Systems </li></ul><ul><li>Wal-Mart </li></ul><ul><li>Westar Energy </li></ul><ul><li>Wind on the Wires </li></ul><ul><li>WISCAP </li></ul><ul><li>Wisconsin Clean Cities </li></ul><ul><li>Wisconsin Energy Conservation Corp. </li></ul><ul><li>Wolverine Power Cooperative </li></ul>
  16. 16. <ul><li>Goal : Meet at least 2% of regional annual retail sales of natural gas & electricity via efficiency by 2015 and each year thereafter. </li></ul><ul><ul><li>Measured annually by baseline of rolling average of previous three years retail sales. </li></ul></ul><ul><ul><li>C02 Savings = eliminate growth in C02 from electricity & gas after 2015 </li></ul></ul><ul><ul><li>Most aggressive regional commitments in North America </li></ul></ul>Energy Efficiency
  17. 17. Energy Efficiency <ul><li>Organized into 4 subgroups: </li></ul><ul><ul><li>Energy Efficiency potential studies </li></ul></ul><ul><ul><li>Utility-related policies </li></ul></ul><ul><ul><li>Building codes, appliances standards & governments leading by example </li></ul></ul><ul><ul><li>Best practices </li></ul></ul><ul><li>Fleshing out policy options which will be analyzed by Center for Climate Strategies </li></ul><ul><li>CCS will complete their analysis by Sept.-Oct. </li></ul><ul><li>In October MGA’s model will enable Advisory Group to determine packages of policies that achieve MGA’s 2% goal </li></ul>
  18. 18. <ul><li>Goals by 2025 : </li></ul><ul><li>Increase availability of low-carbon fuels by 10-fold </li></ul><ul><li>Reduce fossil fuel inputs to biofuels by half </li></ul><ul><li>Meet half the region’s transportation demand with biofuels and other low-carbon fuels </li></ul><ul><li>Midwest will achieve highest biofuel market penetration anywhere </li></ul>Bio-economy & Transportation
  19. 19. <ul><li>Goal: By 2030 , 30 percent of region’s electricity consumed comes from renewable sources </li></ul><ul><li>Most aggressive regional commitments in North America </li></ul>Renewable Electricity
  20. 20. <ul><li>Objectives include : </li></ul><ul><ul><li>Expanding the region’s domestic production of wind turbines, towers and blades, solar technologies and other renewable energy technologies </li></ul></ul><ul><ul><li>Make most efficient use of the existing transmission infrastructure and develop new infrastructure to accommodate the region’s economic renewable electricity </li></ul></ul><ul><ul><li>Ensure retention of local economic benefits from wind and other renewable power development </li></ul></ul><ul><ul><li>Maximize cost-effective renewable electricity production in the region and its integration on the grid </li></ul></ul>Renewable Electricity
  21. 21. <ul><li>Goals : </li></ul><ul><li>By 2012 : A multi-jurisdiction CO2 pipeline sited and permitted. </li></ul><ul><li>By 2015 : Commercial IGCC with CO2 capture using both eastern & western coals by 2015 (MGA states have 25% of U.S. recoverable reserves). </li></ul><ul><li>By 2020 : all new coal plants have CCS. </li></ul><ul><li>By 2050 : entire coal fleet is transitioned to CCS. </li></ul><ul><li>Regional commitments rival those of the European Union </li></ul>Advanced Coal w/CCS
  22. 22. Basic Scope of Work for Each Advisory Group <ul><li>Quantifiable Policy Measures </li></ul><ul><li>Identify, characterize, model, prioritize and recommend quantifiable policy measures to governors and premier’s staff to achieve MGA goals. </li></ul><ul><ul><li>Recommend policy measures to MGA Greenhouse Gas Accord advisory group to complement cap-and-trade in achieving broader regional emissions reductions targets and also to reduce the cost of the cap-and-trade program itself. </li></ul></ul><ul><li>Other Initiatives </li></ul><ul><li>Identify, develop and, where appropriate, begin implementing critical initiatives that achieve Platform’s goals (e.g., technical assessments, public-private partnerships, collaborative projects, etc.). </li></ul>
  23. 23. Scope of Work (cont.) <ul><li>Regional Scenario Model Development </li></ul><ul><li>Provide input into the design of a model to run regional scenarios that demonstrate the results of multiple combinations of energy efficiency, bioenergy, renewable electricity and advanced coal/CCS themes </li></ul><ul><li>MGA Energy Security & Climate Stewardship Roadmap </li></ul><ul><li>Develop a broader roadmap that outlines modeling results, recommended policies and initiatives, implementation results to date and next steps (roadmap will be a primary documentary centerpiece for next Summit in Sept. 2009) </li></ul>
  24. 24. <ul><li>6 Cooperative Regional Initiatives </li></ul><ul><ul><li>CO2 management infrastructure partnership </li></ul></ul><ul><ul><li>Transmission adequacy initiative </li></ul></ul><ul><ul><li>Low-carbon energy transmission infrastructure </li></ul></ul><ul><ul><li>Bioproduct procurement program </li></ul></ul><ul><ul><li>Renewable fuels corridors and common signage </li></ul></ul><ul><ul><li>Advanced bioenergy permitting collaborative </li></ul></ul>Platform Elements
  25. 25. <ul><li>Challenges : </li></ul><ul><ul><li>Most coal-dependent power sector </li></ul></ul><ul><ul><li>Energy intensive manufacturing and agriculture industries </li></ul></ul><ul><li>Opportunities : </li></ul><ul><ul><li>World class renewables potential </li></ul></ul><ul><ul><li>Vast reserves of coal with geologic formations to store CO2 and agriculture land, forests and wetlands to sequester it </li></ul></ul><ul><ul><li>Industrial base that can be retooled to design, manufacture and service next generation energy technologies at scale </li></ul></ul>Regional Challenges and Opportunities
  26. 26. Keys to Success <ul><li>Leadership from governors </li></ul><ul><li>Midwestern practicality </li></ul><ul><ul><li>- Advanced coal and renewables </li></ul></ul><ul><ul><li>- Strong energy efficiency component </li></ul></ul><ul><li>Regional goals </li></ul><ul><li>Stakeholder input </li></ul><ul><li>Potential for new jobs </li></ul>
  27. 27. www.midwesterngovernors.org www.midwesternaccord.org Jesse Heier [email_address] 202-624-5460

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