Global Warming Initiatives, & U.S. Department of Energy

1. Global Warming Initiatives, & U.S. Department of Energy Climate Change Initiatives in: North Carolina, Federal Government ----------------------------------------------------------------- Global Warming Initiatives, www.gwi-nc.orgJim Haven, Executive Director, (919) 515-0700

2. Agenda • Climate Wise/GWI Program Established in 1995 • Enhancing Voluntary Reporting of Greenhouse Gases • Integrating Federal & State Registries • Emissions Trading, Cap & Trade • Energy Star, Climate Leaders, Climate Vision, Waste Wise, Industrial Technologies Program • Proposals for North Carolina to remain as the leading State in Industrial reporting of GHG Emission

3. Past 1995-2001: • $60K Federal, $60K State (Overchg.Fund) • Two missions, 1) Obtain State Funding, 2) Determine Best Practices for Industrial environmental efficiency and DOE/EPA Climate Wise Pilot Program in 14 States. • 1995 DENR: Climate Wise for North Carolina • State Energy Div./SEO Administered voluntary reporting of greenhouse gasses. • No success on State funding • Climate Wise working with industry exceeded plan.

4. Past • 2000/01 Climate Wise pilot program ended, became Energy Star, Climate Leaders, continued VRGG . • June 2002: State cut support, cancelled program. 39 facilities left in mid reporting. Haven continued 2001 YE • All companies said they wanted to continue and support. • Nov. 2002: DOE, EPA, USDA, DOC workshop

5. Why - GWI • Recommendations to incorporate as non-profit, non-government, 501(c)3. • State can only use tax dollars in-state • Many foundations, grants, donations can not go to state or federal organizations, must be 501(c)3 • State monies go up and down to match budget, not stable enough for a sustainable program • State and Federal organizations can provide funds directly to a 501(c)3 organization • A mix of grants, foundation, private, company, membership support is the best way to sustain an organization. • Jan. 2003: GWI Incorporated, 501(c)3 • N.C. Leads Nation in Industrial Registry of GHG in 2000, (Also,2001,and 2002) • 2003: “GWI North Carolina Climate Change Registry”, two updates in 2004. • 2003: GWI Home Page: www.gwi-nc.org

6. Why - GWI • EPA & DOE granted GWI same rights as Climate Wise through VRGG, Industrial Technology, Climate Vision, Climate Leaders, Waste Wise. • Climate Leaders & Waste Wise authorized GWI to report their GHG information to VRGG. VRGG requires entity wide reporting, multi state reporting that couldn’t be done under a state only program. • GWI reported VRGG enhancement status to the WEEC in Atlanta in 2003 and DOE has provided PPt presentation for GWI to present in Austin, Sept.2004. • GWI given same privileges as a major corporation with many facilities, GWI represents 22 corporations with 40+ facilities. GWI is an aggregator of DOE and EPA data. GWI represents North Carolina as a leading state in VRGG.

7. Present • 2003 FY VRGG for 40+ facilities. • Corporate Energy Management Plan. • GWI’s N.C. Climate Change Registry updates. • Projections for N.C. reporting for 2003 & 2004. • Federal voluntary reporting registry assistance. • Proposing actions for N.C. related to GHG. • Educating N.C. Legislators on GHG options. • Educating the public on GHG proposals being considered by individuals and agencies in N.C. • Working to unite the interested parties related to reporting, registering, and trading of GHG.

8. Programs Promoted by GWI

9. International Council for Local Environmental Initiatives • ICLEI: World Wide approximately 500+ • ICLEI-US: Cities for Climate Protection, 185+ • N.C. Participants by City/County Resolution: Durham--Chapel Hill–Carrboro--Orange County • Presented to: • Major cities, League of Municipalities, • Association of County Commissioners, • Statewide Council of Government. CCP funding cut by SEO on June 30,2002 Will continue with new funding, a great program.

10. Emissions Tradingand Brokering • World-wide Emissions Trading – CO2E • Aggregation – Sell Blocks - Natsource • Chicago Climate Exchange – Individual Co.s • US companies help their international sites • Emissions Management Association • VRGG aligning program for trading. • Gilcrest-Oliver Climate Stewardship Act (3-30-4) • Lieberman-McCain Climate Stewardship Act (2003)

11. 2004 GWI CalendarCall if you would like to attend or assist • NGO Climate Change Updates to ERC., Continuous • Mercury & CO2 Seminar, McKimmon, April • GHG Registries, Global Warming Updates, and the Bottom Line Seminar hosted by the California Registry, May • Fayetteville Area Economic Dev. Corp., May • World Energy Engineering Congress, Austin Sept. • GWI/VRGG, 13 location across N.C. this Fall. • GWI’s N.C. Climate Change Registry updated Qtrly • Fed. Registry (Enhancements to VRGG) 3rd & 4th qtr • Technical Guidelines • General Program • Software & Reporting forms

12. GWI’s North Carolina Climate Change Registry Reporters: DOE-EIA Voluntary Reporting of Greenhouse Gas Program. 2003 Pending. • DOE VRGG 40 Facilities • Climate Wise/Energy Star 22 Corporations • Landfill Gas Reporters 11 Sites • Utilities Reporting ____ 3 Corporations • Waste Wise 40 Companies • Climate Leaders 15 Corporations • ICLEI(C/CCP) 3 Cities, 1 County • Chicago Climate Exchange 1 Pending + Others

13. Future • Regional Seminars and Workshops • Increased participation in VRGG • International Council for Local Environmental Initiatives (ICLEI) • Emissions Trading • Investigating integration of Air Quality and Climate Change programs/reporting • Integrated Contingency Plan • Liaison with other state registries • GWI: California GHG Registries, Climate Policy and the Bottom Line, May 5-7, 2004

14. Future • Partner with Associated Agencies • Obtain Partnership with the State of N.C. • GWI will help implement, track, and report the reductions in the Federal GHG Registry for N.C. credit. • Report anticipated GHG reductions in the VRGG, Energy Star, and State Registries • GWI’s NC State Global Change Registry. • Integrate Climate Wise/GWI into a State Climate Change Program.

15. GWI in Support of the State Energy Plan 2003 Recommendations

16. GWI in Support of the State Energy Plan 2003 Recommendations

17. Enhancing the DOE/EIA Voluntary Reporting of Greenhouse Gases Program Paul F. McArdle, Ph.D. U.S. DOE, Energy Information Administration Office of Integrated Analysis & Forecasting 202-585-4445, 1-800-803-5182 paul.mcardle@eia.doe.gov www.eia.doe.gov/oiaf/1605/frntvrgg.html

18. VRGG Program Background • Required by Section 1605(b) of the Energy Policy Act of 1992 – (a.k.a. – “1605b Program”) DOE • Establishes a Public Record of Greenhouse Gas Emissions, Reductions, & Commitments • Accepts a Broad Range of Actions as Reportable • Flexible Program to Encourage Participation • Reports are Self-certified • First Data Submitted in 1994

19. What We Were Directed to Do by President Bush 2-14-2 Directed the Secretary of Energy, in consultation with the Secretary of Commerce, the Secretary of Agriculture, and the Administrator of the Environmental Protection Agency, to propose improvements to the current 1605(b) voluntary emissions reduction registration program. These improvements will enhance measurement accuracy, reliability, and verifiability, working with and taking into account emerging domestic and international approaches. Establish a U.S. Goal to reduce GHG intensity by 18% by 2012.

20. What We Were Directed to Do • Directed the Secretary of Energy to recommend reforms to ensure that businesses and individuals that register reductions are not penalized under a future climate policy, and to give transferable credits to companies that can show real emissions reductions. • Support Financial Incentives, • Directed the Secretary of Agriculture, in consultation with the Environmental Protection Agency and the Department of Energy, to develop accounting rules and guidelines for crediting sequestration projects, taking into account emerging domestic and international approaches. • Challenged businesses to take action.

21. Objectives for Revising 1605(b) • Strive for accuracy, transparency, consistency, completeness. • Balance rigor with practicality; stringency with flexibility. • Recognize entities that contribute to the President's goal of reducing the emissions intensity of the U.S. economy; • Encourage reporters – particularly those with large emissions – to provide a more accurate, consistent, and complete record of emissions and emission reductions. • Create a central program for recording achievements associated with voluntary emission reduction programs, such as Climate Leaders and Climate VISION.

22. Why Do People Report? • Gain Public Recognition for Environmental Stewardship • Establish a Public Record of Achievement • Gain Experience in Calculating, Reporting, and Registering Greenhouse Gas Emissions • Gain Knowledge of Innovative Technologies to Reduce Greenhouse Gas Emissions • Learn GHG Accounting Issues and trading opportunities

23. Proposals for the State of North Carolina • Support GWI, an established program performing most GHG issues from the county to the residence. • Establish a “Climate Change Review Commission” or subsection of ERC with SEO, DENR, Environmental Defence, Global Warming Initiatives, etc. • Training in preparation for Cap & Trade (Chicago Climate Exchange, etc. • Encourage Climate Leaders, Waste Wise, Energy Star, ICLEI, Cities/Counties for Climate Protection,etc. • Statewide Awareness Campaign • Incentives, Recognition, Penalties

24. Proposals for the State of North Carolina • Tax or fee to cover expenses $5K/10K MTCO2E ($0.5/K MT) • All companies self report intensity, (energy use & production) • >10K MTCO2E mandatory registration, under VRGG & GWI • Verification by AEE-CEM accreditation • Public Relief Fund for climate change issues, funding from all energy sources and special usage of critical substances.

25. Thank you! James R. Haven, Executive Director Global Warming Initiatives, Inc. NC State University, Centennial Campus 1017 Main Campus Drive-Suite 3100 Raleigh, NC 27606 (919) 515-0700 www.gwi-nc.org