KEY FEATURES OF MCCAIN LIEBERMAN

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KEY FEATURES OF MCCAIN LIEBERMAN

• Affects multiple sectors (not just power plants)
• Applies to imports and allows offsets from
  outside US
• Requires rulemaking by multiple agencies (not
  just EPA)
• Creates many new monitoring and reporting
  requirements
• Enters brave new world of offsets.

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NCSE Conference on Climate Change January 17, 2008

• Challenges of GHG Rulemaking
• Where the Rubber
• Meets the Road
• Key Features of Climate Change Legislation
• Eric V. Schaeffer, Esq.
• Director, the Environmental Integrity Project
• eschaeffer_at_environmentalintegrity.org

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MCCAIN-LIEBERMAN (S 1291)

• Covers industrial facilities with CO2 emissions
  greater than 10K tons per year
• Includes fugitive emissions from fossil fuel
  production and refining
• Continuous monitoring if technically feasible
  otherwise, rely on readily available and
  reliable methods.

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ALLOCATION OF GREENHOUSE GAS ALLOWANCES(MCCAIN
LIEBERMAN)
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ALLOCATION OF GREENHOUSE GAS ALLOWANCES(MCCAIN
LIEBERMAN) (continued)
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ALLOCATION OF GREENHOUSE GAS ALLOWANCES(MCCAIN
LIEBERMAN) (continued)
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ALLOCATION OF GREENHOUSE GAS ALLOWANCES(MCCAIN
LIEBERMAN) (continued)
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METHOD OF MEASUREMENT IS CRITICAL

• Alberta refinery estimates 283 tons of methane
  (5959 tons CO2 equivalent) in 2004, based on EPA
  emission factors.
• 2005 light absorption sampling (LIDAR) at same
  refinery estimates 2640 tons of methane (55,400
  CO2 equivalent) from fugitive sources alone.
• Refinery exempt under first method, not under
  second.

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MCCAIN-LIEBERMAN OFFSETS

• Regulated facilities may rely on offsets (up to
  15 domestic, 15 international) to meet
  allowance obligations
• Offsets must yield additionality the amount
  that offset project reduces emissions below
  baseline
• Baseline whatever would have happened absent
  offset project

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MCCAIN-LIEBERMAN OFFSETS

• Offsets must be real, verifiable,
  additional, permanent, and enforceable
• Requires procedures for initiating, reviewing,
  measuring, registering, and verifying projects.
• Mitigation and compensation for reversals.
• EPA must establish discount formulas to reflect
  uncertainty.