Date post: | 21-Jan-2016 |
Category: |
Documents |
Upload: | justin-eaton |
View: | 214 times |
Download: | 0 times |
www.ucsusa.org
RGGI Model RuleRGGI Model RulePreliminary CommentsPreliminary Comments
Alan NogeeAlan NogeeClean Energy Program DirectorClean Energy Program DirectorUnion of Concerned ScientistsUnion of Concerned Scientists
May 2, 2006May 2, 2006Hartford, CTHartford, CT
www.ucsusa.org
• RGGI will be effective in its own right and as a national model to the degree it requires the Northeast electricity sector to reduce its contribution to carbon emissions.
• RGGI can and should dispel the myth that the problems and solutions are always in other sectors and other regions.
www.ucsusa.org
Electricity should be easiest, least expensive sector to control
• Recent EIA modeling of National Commission proposal in different allowance price scenarios:– Electricity accounts for 40% of emissions – Electricity provides 2/3 of emission reductions
in modest reduction scenarios– Electricity provides 85% of reductions in
deepest scenarios (though more expensive than necessary because EIA doesn’t include additional energy efficiency.)
www.ucsusa.org
RGGI reductions are modestand need to be real
• No exemptions without decreasing the cap• E.g., UCS is a strong advocate of co-firing
biomass and coal.• But when biomass contribution exceeds 50%,
fossil emissions do not magically fall to zero, and should not be exempted.
• If there are particular circumstances that have led to proposed exemptions, important to identify to enable stakeholders to help address in ways that don’t threaten program integrity.
www.ucsusa.org
Reducing carbon in electricity means replacing or decarbonising coal
0
500
1000
1500
2000
2500
3000
3500
4000
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
Co
al g
en
era
tio
n (
GW
h)
• National Commission Case 4
• Only scenario with overall carbon reductions– 10% power
plant carbon reductions by 2021
– 44% by 2030
• Coal makes the difference
Reference case + 250 net new
coal plants
Case 4 - gradually replacing 125 coal plants: NO new conventional coal
Source: EIA, Energy Market Impacts of Alternative Greenhouse Gas Intensity Reduction Goals, March 2006. http://www.eia.doe.gov/oiaf/servicerpt/agg/pdf/sroiaf(2006)01.pdf
www.ucsusa.org
RGGI surrounded by proposed new coal plants135 plants (85 GW) proposed nationally
• PA, WV, VA proposals sufficient to offset >100% of RGGI reductions
• If leakage encourages new coal plants to be built, will emit for 40-60 years.
• Much more expensive to reduce later.
www.ucsusa.org
Need to overcome barriers to efficiency and renewable
investments
• With low offset safety valve trigger, companies may choose MORE EXPENSIVE spot market offsets over less expensive long-term investments
• Maximize consumer allocations• Strong 5 point offset test• Consider revising/eliminating offset trigger prices• More mechanisms to encourage additional
efficiency and renewables• Key to the region receiving the economic
development benefits from solutions