VML Environmental Quality Policy Meeting: Regional Greenhouse Gas - PowerPoint PPT Presentation

VML Environmental Quality Policy Meeting: Regional Greenhouse Gas Initiative Dawone Robinson Virginia Policy Director Chesapeake Climate Action Network

Presentation Overview • Need for Solutions – Two Parts HB 2205/SB 1428 – The Regional Greenhouse Gas Initiative (RGGI) • • Results of RGGI in Participating States Q & A •

Need for Solutions: Part I The Clean Power Plan

Reduction Goals Timeline • EPA Timeline • June 2, 2014 – EPA draft rules announced • Aug. 15, 2014 – Deadline for DEQ public comment • Dec. 1, 2014 – Deadline for state comment to EPA • August 2015 – EPA final rules announced • June 2016 - 2018 – Virginia State Implementation Plan due • *June 2018 if Virginia joins regional collaboration like the Regional Greenhouse Gas Initiative (RGGI) • 2030 – Reduction goals achieved for Virginia • 2032 – Reduction goals achieved for 3 year averages

CO 2 Reductions Between 2012 & 2030

Emissions Reduction Option 1: In-state Only Building Block Value Allocated in Goal-Setting Formula 1) Heat rate improvement at fossil fuel power Average heat rate improvement of 6% for coal steam plants electric generating units (EGUs) Dispatch to existing and under-construction natural 2) Shifting dispatch from coal to natural gas gas combined cycle (NGCC) units to up to 70% capacity factor Dispatch new nuclear generation under construction, moderate deployment of new 3) Increasing renewable and nuclear generation renewable generation, and continued use of existing nuclear generation Increase savings from energy efficiency programs to 4) Increasing demand-side energy efficiency 1.5% annually

Emissions Reduction Option 2: Multi-state • PJM Interconnection – World’s largest electricity grid operator • PJM operates electricity grid covering 14 states, including VA • November ‘14 and March ‘15 Analysis: Multi -state is cheaper • State-by-state compliance will require more [coal plant] retirements than regional compliance and be almost 30% more expensive. • “States have the ability to trade reductions among each other to achieve lower costs of compliance” ~ PJM Chief Economist Paul Sotkiewicz • “ Not only is it more cost effective to do regional compliance, but there’s now fewer units at risk for retirement” ~ PJM’s Sotkiewicz

Need for Solutions: Part 2 Resources for Flooding Adaptation

CCAN Safe Coast Virginia Report Press Conference – 7.9.14 Outlines a 10-point plan to mitigate and adapt to sea level rise in Virginia

Virginia Institute of Marine Science (VIMS) Sea Level Rise Projections in Historical Flooding in the Hague Hampton Roads (Norfolk, VA)

$1 billion in adaptation funding needed for Norfolk Fugro Analysis in 2012 – U.S. Branch of a Dutch Engineering Firm

The Virginia Coastal Protection Act HB 2205/ SB 1428 – The Regional Greenhouse Gas Initiative (RGGI) & Creation of the Commonwealth Resilience Fund

The Virginia Coastal Protection Act SB 1428/HB 2205 • Declares that sea level rise challenges needs urgent attention • Joins Virginia into the Regional Greenhouse Gas Initiative (RGGI) • Instructs Virginia’s Department of Environmental Quality (DEQ) to establish rules for participation and allocation of allowances • Creates The Commonwealth Resilience Fund to accept RGGI auction allowances and any additional state appropriations • Requires The Commonwealth Resilience Fund to be appropriated to adaptation efforts and other state initiatives

Regional Greenhouse Gas Initiative (RGGI) • Regional cap-and trade program • Power plants 25 MW or greater • Carbon allowance for every ton of CO 2 • RGGI sets cap; lowers it 2.5% annually • Power plants decide how to stay below cap • Allowances sold at quarterly auction – returned to states for re-investments • Roughly $200 million in projected RGGI auction revenue annually through 2030 • Solution to EPA’s Clean Power Plan

Commonwealth Resilience Fund - Allocations HR Adaptation – 50% RE and EE – 35% SW Recovery – 10% • Half ($100 million by • 30% ($60 million by • 10% ($20 million by 2020) for sea level rise 2020) for statewide 2020) for economic and flooding adaptation energy efficiency development, education, programs and workforce training Business, infrastructure, • programs in SW Virginia residential, and public Half of the above for • service for sea level rise low-income residents (at • Woefully inadequate and flood risk no cost) and moderate- existing resources for income residents residents in SW Virginia for economic recovery 5% ($10 million) for • statewide renewables

RGGI Results Through 2014 Acadia Center Report Analysis Group Report (2008 – 2013) (2012- 2014) • RGGI states cut CO 2 2.7 times • $460 million in bill reductions faster than non-RGGI states • $1.3 billion in net economic activity • RGGI states’ economy grew 2.5 times faster than non- • 14,200 new job years related to RGGI states RGGI – all nine states showing net job additions in sector • RGGI states electricity prices • EE “stands out as the most decreased 8% while country economically beneficial use of increased 6% since 2008 RGGI dollars”

RESIDENTIAL RATE COMPARISON (DVP CEUR Presentation 7/13/15) Dominion’s typical residential bill is 20% below the national average, 30% below the East Coast average, and 41% below the RGGI states average. Dominion rates have risen by 2% since 2008. $185.13 $157.14 $137.02 - 5.5% - 9.8% $109.48 Dominion National East Coast RGGI States Average Average Average 17 * 1,000 kWh monthly usage

Customer Bills – U.S. Energy Information Administration (EIA) Average Residential Monthly Average Residential Monthly Energy Consumption Energy Bills • Virginia – 1,156 kWh • Virginia - $125.36 • National Average – 909 kWh • National Average - $111.08 • RGGI States – 702 kWh • RGGI States - $108.43

Questions? Dawone Robinson – dawone@chesapeakeclimate.org Virginia Policy Director – 804.767.8983(o) Chesapeake Climate Action Network