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DATE: February 4, 2011 TO: Phylmar Regulatory Roundtable - Environment and Sustainability Digest FROM: Phylmar Group and Beyond Compliance, LLC RE: Latest Climate Change Headlines Upcoming Events: 1. Navigating the American Carbon World Conference in Los Angeles, April 13-15, 2011 2. The Climate Registry schedules Northwest Climate Policy Forum, March 10-11, 2011 3. California Air Resources Board (ARB) Hearing on Low Carbon Fuel Standard revisions, February 24 4. Climate Action Reserve (CAR) Ozone Depleting Substances Project Verification Training, February 23 5. CAR Nitric Acid Production Project Verification Training, February 22 International Activities: 6. UNFCCC Chief says Cancún must be followed by higher global emission cuts and rapid launch of new climate bodies and funds, December 20 U.S. National Activities: 7. EPA to Defer GHG Permitting Requirements for Industries that Use Biomass, January 12 8. Republicans Launch Swift Attack on Obama's Climate Agenda, January 10 9. Boxer promises GOP a fight on climate change, January 6 10. Court allows EPA GHG Tailoring Rule to Take Effect, January 2 11. EPA narrows states’ GHG permitting authority, December 30 12. EPA finds that seven states failed to adopt GHG permit requirements, December 29 13. EPA delays reporting deadline for certain information in GHG Mandatory Reports, December 27 14. EPA proposes revisions to GHG Mandatory Reporting Rules, December 27 15. EPA to Set Modest Pace for Greenhouse Gas Standards, December 23 16. Renewable Energy and Energy Efficiency Export Initiative, December 7 California Activities: 17. ARB Workshop Reviews Proposed Changes to AB 32 Implementation Fee Regulation, January 21 18. CalRecycle Workshop Reviews Proposed AB 32 Mandatory Commercial Recycling Regulation, January 19 19. California Commission Approves Use of Tradable Renewable Energy Credits, January 13 Other State and Provincial Activities: 20. Regional Greenhouse Gas Initiative (RGGI) RGGI States Issue Notice for March 2011 CO2 Allowance Auction, January 11 21. Massachusetts issues “Clean Energy and Climate Plan for 2020, December 29 22. Three Northeast States Raid Climate Change Funds, December 15 23. Texas Railroad Commission Adopts Carbon Storage Rules, December 2 Voluntary GHG Management and Reporting Initiatives: 24. Climate Action Reserve Developing Agriculture Protocols, January 19 25. Honda Takes Green Purchasing Global, January 14 Other Information Sources and Topics: 26. Low-Carbon Energy Investment Hit a Record $243 Billion in 2010, BNEF Says, January 11 27. New Report Examines Paths to Cleaner, More Secure U.S. Transportation Solutions, January 11 28. A Scientist, His Work and a Climate Reckoning, December 21 29. University of Calgary unveils long-term emissions reduction plan, December 17 30. Global Clean Power Sector Could Attract $2.3 Trillion by 2020, December 8 Upcoming Events: 1. Navigating the American Carbon World Conference in Los Angeles, April 1315, 2011 – The Climate Action Reserve (CAR) and Point Carbon have scheduled their annual conference. (NACW2011, April 13-15) 2. The Climate Registry schedules Northwest Climate Policy Forum, March 1011, 2011 – The Climate Registry (TCR) has scheduled its next regional Climate Policy Forum, to be held in Seattle. (TCR Seattle, March 10-11) 3. California Air Resources Board (ARB) Hearing on Low Carbon Fuel Standard revisions, February 24 – “The Executive Officer of the California Air Resources Board will conduct a public hearing to consider amendments to the Carbon Intensity Lookup Tables in the Low Carbon Fuel Standard regulation.” (ARB LCFS Revisions, February 24) 4. Climate Action Reserve (CAR) Ozone Depleting Substances Project Verification Training, February 23 – “This course provides a briefing on verifying projects to the U.S. and Article 5 Ozone Depleting Substances (ODS) Project Protocols. This is a mandatory course for Lead Verifiers wishing to perform verification in this sector.” (CAR ODS Verifiers, February 23) 5. CAR Nitric Acid Production Project Verification Training, February 22 – “This course provides a briefing on verifying projects to the Nitric Acid Production Project Protocol. This is a mandatory course for Lead Verifiers wishing to perform verification in this sector.” (CAR Nitric Acid Verifiers, February 22) International Activities: 6. UNFCCC Chief says Cancún must be followed by higher global emission cuts and rapid launch of new climate bodies and funds, December 20 – “Nations must follow up their successful UN Climate Change Conference in Cancún with higher global emission cuts and the rapid launch of new institutions and funds to show the world that a new era of international cooperation on climate change is an established fact, Christiana Figueres, Executive Secretary of the UN Framework 2 Convention on Climate Change (UNFCCC), said on Monday.” (UNFCCC PR, December 20) U.S. National Activities: 7. EPA to Defer GHG Permitting Requirements for Industries that Use Biomass, January 12 – “The U.S. Environmental Protection Agency (EPA) is announcing its plan to defer, for three years, greenhouse gas (GHG) permitting requirements for carbon dioxide (CO2) emissions from biomass-fired and other biogenic sources. The agency intends to use this time to seek further independent scientific analysis of this complex issue and then to develop a rulemaking on how these emissions should be treated in determining whether a Clean Air Act permit is required.” (EPA announcement, January 12) 8. Republicans Launch Swift Attack on Obama's Climate Agenda, January 10 – “As widely anticipated, Republicans in the House of Representatives have wasted no time with their efforts to neuter the Environmental Protection Agency (EPA), using the first two days of legislative business last week to introduce several bills that would strip the watchdog of its right to regulate greenhouse gas emissions.” (ClimateBiz.com, January 10) 9. Boxer promises GOP a fight on climate change, January 6 – “Sen. Barbara Boxer had this to say Thursday to newly empowered Republicans aiming to block federal regulators from cracking down on greenhouse gas emissions: Not so fast.” (SJ Mercury News, January 6) 10. Court allows EPA GHG Tailoring Rule to Take Effect, January 2 – The D.C. Circuit Court of Appeals denied motions by the rule’s opponents to stay its effectiveness pending litigation. (Circuit Court, December 10) and (NY Times, December 14) 11. EPA narrows states’ GHG permitting authority, December 30 – “The final greenhouse gas (GHG) Tailoring Rule includes a step-by-step implementation strategy for issuing Federally-enforceable permits to the largest, most environmentally significant sources beginning January 2, 2011. In this action, EPA is finalizing its proposed rulemaking to narrow EPA’s previous approval of State title V operating permit programs that apply (or may apply) to GHG-emitting sources.” (Federal Register Title V, December 30) and Prevention of Significant Deterioration rules (Federal Register PSD, December 30) 12. EPA finds that seven states failed to adopt GHG permit requirements, December 29 – “The EPA is making a finding that seven states have failed to submit revisions to their EPA-approved state implementation plans (SIPs) to satisfy requirements of the Clean Air Act (CAA) to apply Prevention of Significant Deterioration (PSD) requirements to greenhouse gas (GHG)-emitting sources…. This finding requires EPA to promulgate a Federal implementation plan (FIP) for these seven states applying PSD to GHG emitting sources, and EPA is taking a separate action to promulgate the FIP immediately. The seven states are Arizona, 3 Arkansas, Florida, Idaho, Kansas, Oregon, and Wyoming.” (Federal Register, December 29) 13. EPA delays reporting deadline for certain information in GHG Mandatory Reports, December 27 – “EPA is promulgating this interim final rule to defer until August 31, 2011 the reporting deadline for year 2010 data elements that are inputs to emission equations under the Mandatory Greenhouse Gas Reporting Rule.” (Federal Register, December 27) and extended comment period (Federal Register, January 19) 14. EPA proposes revisions to GHG Mandatory Reporting Rules, December 27 – “On December 27, 2010, EPA concurrently published a proposed Change to the Reporting Date for Certain Data Elements Required Under the Mandatory Reporting of Greenhouse Gases Rule and a Call for Information on Inputs to Emission Equations Under the Mandatory Reporting of Greenhouse Gases Rule. In this action, EPA is providing notice of a public hearing on the Call for Information, to be held on February 3, 2011, and extending the comment period for both actions until March 7, 2011.” (Federal Register December 27 and January 19) 15. EPA to Set Modest Pace for Greenhouse Gas Standards, December 23 – “The Environmental Protection Agency entered into two proposed settlement agreements to issue rules that will address greenhouse gas emissions from fossil fuel-fired power plants and refineries. These two industrial sectors make up nearly 40 percent of the nation’s greenhouse gas emissions.” (EPA announcement, December 23) 16. Renewable Energy and Energy Efficiency Export Initiative, December 7 – “On December 7, Secretary of Commerce Gary Locke announced the Renewable Energy and Energy Efficiency Export Initiative. The Initiative includes 23 commitments from 8 different federal agencies (Department of Commerce, Department of Energy, U.S. Trade Representative, State Department, U.S. Trade and Development Agency, Export-Import Bank of the United States, Overseas Private Investment Corporation, and U.S. Department of Agriculture) for new programs, actions, or deliverables that will help address the major export barriers facing U.S. renewable energy and energy efficiency (RE&EE) companies. Developed to both meet the goals of the National Export Initiative and President Obama’s goal of becoming the leading exporter of clean energy technologies, the Initiative will provide new and more innovative financing mechanisms for U.S. RE&EE exporters….” (Export Initiative, December 7) California Activities: 17. ARB Workshop Reviews Proposed Changes to AB 32 Implementation Fee Regulation, January 21 – “The purpose of this workshop is to discuss with stakeholders ARB’s proposed amendments to the COI Regulation that are necessary to be consistent with recent amendments to ARB’s Regulation for Mandatory Reporting of Greenhouse Gas Emissions. Staff will make the proposed amendments to the COI Regulation available prior to the workshop and plans to 4 take the amendments to the Board for consideration at its April 28, 2011 public meeting. The workshop will also provide an opportunity for comments from stakeholders and the public.” (ARB Fee Workshop, January 21) 18. CalRecycle Workshop Reviews Proposed AB 32 Mandatory Commercial Recycling Regulation, January 19 – “The proposed mandatory commercial recycling regulation will reduce greenhouse gases by requiring businesses to recycle. Recycled materials can include, but are not limited to paper, plastics, glass, metals, cardboard, organics, food waste, and construction and demolition materials.” (CalRecyle Notice, January 19) 19. California Commission Approves Use of Tradable Renewable Energy Credits, January 13 – “The state’s Public Utilities Commission has approved the use of tradable renewable energy credits by investor-owned utility companies to meet their requirements for generating a certain percentage of their electricity from renewable sources.” (Solar Home & Business Journal, January 13) Other State and Provincial Activities: 20. Regional Greenhouse Gas Initiative (RGGI) RGGI States Issue Notice for March 2011 CO2 Allowance Auction, January 11 – “The states participating in the Regional Greenhouse Gas Initiative (RGGI) today released the Auction Notice and application materials for the first quarterly carbon dioxide (CO2) allowance auction to be held in calendar year 2011. The materials provide potential auction participants the information needed to submit a Qualification Application and indicate their intent to bid in the March 9th auction.” (RGGI Auction information, January 11) 21. Massachusetts issues “Clean Energy and Climate Plan for 2020, December 29 –the Executive Office of Energy and Environmental Affairs (EEA) presents the Massachusetts Clean Energy and Climate Plan for 2020. The Global Warming Solutions Act (GWSA, or the Act) of 2008 requires the Secretary of Energy and Environmental Affairs to establish a statewide limit on greenhouse gas (GHG) emissions of between 10 percent and 25 percent below 1990 levels for 2020 — on the way toward an 80 percent reduction in emissions by 2050 — along with a plan to achieve the 2020 target. Secretary Bowles has set that 2020 limit at 25 percent.” (Press Release, December 29) and (Massachusetts Plan, December 29) 22. Three Northeast States Raid Climate Change Funds, December 15 – “A ‘capand-trade’ climate-change proposal is stalled in Washington. But a similar program has been up and running in ten states from Maine to Delaware for two years. The goal is to make polluters pay while raising hundreds of million of dollars for conservation. Yet critics say some states are using the revenue to shore up their budgets, rather than to conserve energy.” (Your Public Media, December 15) 23. Texas Railroad Commission Adopts Carbon Storage Rules, December 2 – “The three Railroad Commissioners Tuesday adopted new rules relating to the 5 underground storage of man-made carbon dioxide for facilities that plan to store CO2 not associated with enhanced oil recovery operations.” (TRC Press Release, December 2) and (TRC Rules, December 17) Voluntary GHG Management and Reporting Initiatives 24. Climate Action Reserve Developing Agriculture Protocols, January 19 – “The Climate Action Reserve (Reserve) has released a Request for Proposals (RFP) to assist in the development of the Cropland Management and Nutrient Management Project Protocols. The contractor(s) will work with Reserve staff and protocol workgroups to conduct research, resolve outstanding methodological issues, and contribute to drafting the protocols. There are two scopes of work under this RFP, each pertaining to a specific protocol. Contractors may submit proposals for one or both scopes of work.” (CAR Agriculture Protocols, January 19) 25. Honda Takes Green Purchasing Global, January 14 – “Honda Motor Co. will start evaluating all of its suppliers on their environmental aspects under the newest revision of its Green Purchasing Guidelines.” (GreenBiz.com, January 14) Other Information Sources and Topics: 26. Low-Carbon Energy Investment Hit a Record $243 Billion in 2010, BNEF Says, January 11 – “Global investment in low-carbon energy surged to a record $243 billion last year, boosted by a 30 percent spending increase in China and a burst in small-scale solar-power installations. The figure eclipses the $186.5 billion spent in 2009 and is more than double the level in 2005, Bloomberg New Energy Finance said today in a statement. The investment came even as clean energy shares had a “lackluster performance” last year, the London-based research company said.” (Bloomberg, January 11) 27. New Report Examines Paths to Cleaner, More Secure U.S. Transportation Solutions, January 11 – “Transportation – literally our economy’s driving force – presents major energy and climate challenges in terms of oil dependence and greenhouse gas emissions. A new report released today by the Pew Center on Global Climate Change examines cost-effective solutions to begin to cut U.S. transportation emissions and oil use now and move toward cleaner, alternative fuels. From burning oil, transportation accounts for more than one-fourth of all U.S. GHG emissions. The report, Reducing Greenhouse Gas Emissions from U.S. Transportation, identifies reasonable actions across three fronts – technology, policy, and consumer behavior – that could deliver up to a 65 percent reduction in transportation emissions from current levels by 2050.” (Pew Report, January 11) 28. A Scientist, His Work and a Climate Reckoning, December 21 – “Two gray machines sit inside a pair of utilitarian buildings here, sniffing the fresh breezes that blow across thousands of miles of ocean. They make no noise. But once an hour, they spit out a number, and for decades, it has been rising relentlessly.” (NY Times, December 21) 6 29. University of Calgary unveils long-term emissions reduction plan, December 17 – “The University of Calgary plans to slash its greenhouse gas emissions by 45 per cent over the next five years and by 80 per cent by 2050, according to the university’s new Climate Action Plan. The university is the first post-secondary educational institution in Alberta, and the second in Canada, to release a detailed Climate Action Plan after joining international efforts to tackle climate change.” (Journal of Commerce, December 17) 30. Global Clean Power Sector Could Attract $2.3 Trillion by 2020, December 8 – “Private investments in G-20 clean power projects could total $2.3 trillion by the end of the decade, according to a report released today by The Pew Charitable Trusts. Massive energy demand and strong clean energy policies will drive investment to Asia, led by China and India. However, by adopting such policies, every G-20 member has the opportunity to attract more private investment in clean power projects and compete more effectively for business in this emerging global industry. ‘Global Clean Power: A $2.3 Trillion Opportunity’ examined projected private investment in wind, solar, biomass/energy from waste, small hydro, geothermal and marine energy projects. The underlying data for this report were compiled by Bloomberg New Energy Finance, the world’s leading provider of news, data and analysis on clean energy and carbon market finance and investment. The report modeled three policy scenarios to determine future growth through 2020: Business-as-usual: no change from current policies; Copenhagen: policies to implement the pledges made at the 2009 international climate negotiations in Copenhagen and; Enhanced clean energy: maximized policies designed to stimulate increased investment and capacity additions.” (Pew Report, December 8) PRR Sacramento Office P. O. Box 660912 Sacramento, California 95866 Beyond Compliance, LLC 1904 Franklin St., Suite 418 Oakland, CA 94612 (916) 486-4415 www.phylmar.com (510) 268-9210 www.beyondcompliance.net 7