Regional Greenhouse Gas Emission RGGI Update

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Regional Greenhouse Gas Emission (RGGI) Update

• For E2 Tech
• March 26, 2009
• Jean Guzzetti
• RGGI Coordinator
• Maine Public Utilities Commission

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Todays Presentation

• RGGI Basics
• Whats happened so far
• Where were headed

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Background

• RGGI Coordinator at the PUC
• Worked as staff to the Energy Conservation Board
• Current the interim program administrator for the
  Energy and Carbon Savings Trust
• RGGI duties at PUC and some work with Efficiency
  Maine
• Mostly involved with the energy efficiency pieces
  of RGGI, DEP does the regulatory work.
• Jim Brooks, Air Quality Director at DEP is here
  today to answer questions.

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RGGI Basics

• Regional cap and trade program
• Greenhouse gas emissions from electrical sector
• Generators of 25MWh or greater
• 35 reduction CO2 from Business As Usual expected
• Purpose
• Reduce Greenhouse gases
• Promote energy efficiency low carbon resources
• Establish a carbon price
• Encourage innovative technologies
• Establish a national model

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Maines CO2 Budget

• Six Year Stabilization Period
• 2009 thru 2014 5,948,902 CO2 allowances per
  year
• Four Year Reduction Period
• 2015 5,800,180 CO2 allowances
• 2016 5,651,458 CO2 allowances
• 2017 5,502,736 CO2 allowances
• 2018 5,354,014 CO2 allowances
• (10 reduction from stabilization period budget)

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Whats Happened So Far?
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(No Transcript)
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To Promote Energy Efficiency

• 100 of revenues from auctions go to Energy and
  Carbon Savings Trust
• No less than 85 of funds to electricity
  conservation
• No more than 15 to fossil fuel conservation

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Maines Energy Efficiency Structure
Energy Conservation Board
Energy and Carbon Savings Trust
Efficiency Maine
Triennial Plan To start July 1, 2010
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So Whats Happening Now?
8.7 million

• Balance Planning and Spending

Energy Conservation Board
Energy and Carbon Savings Trust
Efficiency Maine
Interim Plan Thru July 1, 2010
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The Interim PlanElectricity Conservation

• 25 for
• Large Custom
• Projects
• Min. 100,000
• Max. 1 million
• RFP Process

25 to Efficiency Maine Residential Programs
25 to Efficiency Maine Business Programs
25 held in reserve
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The Interim PlanFossil Fuel Conservation
Low Income Weatherization

• 500,000 to MSHA
• 110,000 to CCI
• 40,000 to Passamaquoddy

75 of remaining to large custom projects

• Independent contractor to evaluate programs

• min. 10,000
• competitive RFP process

25 of remaining held in reserve
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RFP Ranking Criteria

• Primary criteria directly from law
• Reliably reduce greenhouse gas production by
  fossil fuel combustion in the State at the lowest
  cost in trust funds per unit of emissions
• Reliably reduce the consumption of electricity in
  the State at the lowest cost in trust funds per
  kilowatt-hour saved

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Where are we going?

• Number of proposals to legislature to combine
  Efficiency Maine and the Trust
• National Cap and Trade Program?

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Potential Offset Categories

• Building Energy Efficiency
• Methane collection
• Afforestation
• Sulfur Hexafluoride management
• Manure Management
• Forest Management