Water Utility Carbon Footprint/GHG Emissions WorkshopJanice Adair, Department of Ecology

September 29, 2009

Two Sides of the Climate CoinTwo Sides of the Climate Coin

• Mitigation: reducing greenhouse gases through– Market policies (cap and trade; carbon tax)– Traditional air regulation (emission performance

standard)– Policies to promote energy efficiencies and reduced

use

• Adaptation: living with the consequences– Water: too much and too little– Human health: increased heat days; ozone; pests– Biodiversity: impacts on plants and animals

Market PoliciesMarket Policies

• Cap and Trade:– Government sets an overall emissions limit– Permits (allowances) issued up to that limit– Limit decreases over time– Market sets the price of the allowances

• Carbon Tax:– Government sets the price (levied on carbon intensity

in CO2equivalent)– Market determines the level of reduction

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Traditional Air RegulationTraditional Air Regulation

• Clean Air Act– Implemented through compliance with national

ambient air standards

– Technology based control

• Greenhouse gases– Emissions mix in the global atmosphere

• What is the compliance measure?

– Come from multiple and diverse sources• Few sectors with “best available” or “reasonably

available” control technology

Comprehensive Approach to Comprehensive Approach to Climate ChangeClimate Change

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• Create a market for reductions to reduce the cost of renewable energy and alternative fuels

• Limit greenhouse gas emissions

• Establish a price on emissions

• Implement other policies for reductions that don’t respond to price signals

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Developing Other PoliciesDeveloping Other Policies

• Understand where emissions come from– Transportation: 46%; Electricity: 20%; Industrial: 12%– Residential/Commercial buildings: 9%; Agriculture: 6%– Industrial processes: 4%; Waste: 3% (WA 2005 Inventory)

• Develop policies that address those activities– Clean car standards– Incentivize electric vehicles– Renewable fuel standard– Renewable portfolio standard– Improved building codes– Appliance efficiency standards– Clean energy jobs training and retraining– Various tax incentives

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Two Washington-specific policiesTwo Washington-specific policies

• Greenhouse gas reporting– Starts in 2010 for 2009 emissions– 10,000 metric tons annual from stationary

sources– 2,500 metric tons annual from fleets– Will request some changes in 2010 session

• SEPA– “Interim Advisory” – not prescriptive– Public review ~October– Final in December

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Cost of InactionCost of Inaction

• Climate Impacts Group/UW– Average increases in annual temperature of 2.2°F by the 2020s, 3.5°F by the

2040s, and 5.9°F by the 2080s (compared to 1970 to 1992).– Wetter autumns and winters, drier summers, and small overall increases in

annual precipitation (+1 to +2 percent), with increases in extreme high precipitation in western Washington

– Lower water supply in summer months - Decreases in spring snowpack by nearly 30 percent are projected across the state by the 2020s, 40 percent by the 2040s and 65 percent by the 2080s.

• Climate Leadership Initiative/UO– Total increased costs to the state: 2020: $3.8 billion 2040: $6.5 billion– Average increased costs per household: 2020: $1,250 2040: $1,800– Costs associated with increased wild fires, reduced salmon populations,

increased health care costs, increased storm damage, continued use of less energy efficient technologies

www.ecy.wa.gov/climatechange/index.htm