Spencer Reeder Washington State Department of Ecology

1. Washington State Climate Policy & the Western Climate Initiative (WCI) Spencer Reeder Washington State Department of Ecology University of Oregon, School of Law October 19, 2007

2. WA’s Emissions Profile *2005 estimates based on preliminary data

3. Washington’s Climate Change Challenge Executive Order 07-02 • Specific climate change goals “…policy options that can maximize the efficiency of emission reductions including market-based systems,… and incentives;” “Determine specific steps… to prepare for the… impacts to public health, agriculture, the coast line, forestry, and infrastructure.” “Work with… local governments…” “…in consultation with a broad range of stakeholders to develop a climate change initiative,…”

4. Education and Engagement Work Group

5. Specific EO 07-02 Targets By 2020 reduce GHG emissions to 1990 levels By 2035 reduce emissions to 25% below 1990 levels By 2050 reduce emissions to 50% below 1990 levels By 2020 increase the number of clean energy sector jobs to 25,000 from the 8,400 jobs in 2004 By 2020 reduce expenditures by 20% on fuel imported into the state

6. Mitigation and Adaptation Five Working Groups in each Focus Area Mitigation: - Energy Supply, Transportation, Residential/Commercial, Forestry, Agriculture Preparation/Adaptation: - Forestry, Agriculture, Human Health, Coastal/Infrastructure, Water Resources and Quality • Develop specific strategies for each issue, implementation plan, first order economic analysis • Identify gaps and additional research needs

7. Schedule for completion • Advisory Team and Preparation/Adaptation recommendations completed: Dec-07 • Public review and comment: Dec/Jan-08 • Advisory Team Report and Preparation/Adaptation recommendations with public comments to Agency Directors: Jan-08 • Education and engagement recommendations to Directors: Jan-08 • Directors’ Report to the Governor: Feb-08

8. WA’s Emissions Profile

9. WA 2007 Passed Legislation Senate Bill 6001 • Put Executive Order goals into statute • Created a performance standard for electrical utilities • Allows for sequestration of emissions to meet standard • Requires Dept. of Ecology to write rules for the standard and for sequestration House Bill 1303 • Enacted wide ranging environmental and energy provisions and funding (i.e., diesel bus retrofit, vehicle electrification, biofuels, & research) • Funded adaptation work (UW Climate Impacts Group)

10. Recently Implemented Gov’t Programs & Actions • California Car Standards (Planned for 2009) • Renewable fuels standards for transportation • High-performance green building standards • Stringent energy-efficiency building codes • Renewable Portfolio Standard (Initiative Measure) • Electric utility conservation programs • Commissioned economic study of impacts of climate change

11. Clean Car Standards - Update Gov. Chris Gregoire announced Oct. 18: Washington State is formally joining California in an anticipated lawsuit against the federal government due to EPA delay in action on CO2 tailpipe emissions waiver ruling.

12. Local Government Actions • WA Cities & Counties for Climate Protection • Univ. of Washington - Climate Impacts Group, Watershed Assessment

13. Western Regional Climate Action Initiative (WCI) Originally included WA, OR, CA, AZ, and NM • British Columbia, Utah and Manitoba have joined • Observers: 5 Western states (WY, AK, CO, KS, NV), 3 Canadian Provinces (Ontario, Saskatchewan, Quebec) and one Mexican state (Sonora) Directs us to: • Join national or regional registry • Set regional goal that is consistent with state/provincial goals • Design “multi-sector market-based” mechanism

14. WCI Status Initial Tasks Completed • Regional goal established (15% by 2020) • WCI members joining of The Climate Registry (39 states, District of Columbia, 2 Canadian provinces, 3 tribes and 1 Mexican state) “Multi-sector market based mechanism” Design Process • 5 subcommittees formed and underway: Scope, Allocations, Offsets, Electricity, Reporting • Stakeholder outreach regionally and in each state • Preliminary design framework anticipated mid-2008

15. State, Regional, National Involvement Principles Sectors Allocations Market Mechanism Tutorials Technical Working Groups ES RCI Education And Engagement FR Reporting Ag Cap and Trade Trans Climate Advisory Team Executive Order 07-02 Offsets Adaptation Workgroups Western Climate Initiative Ag FR H2O C/I HH WA, OR,CA, AZ, NM, UT, B.C.,MB SB 6001 Goals in statute Performance Sequestration The Climate Registry 39 states plus D.C. 3 Tribes 2 Canadian Provinces 1 Mexican State Reduction Goal • WCI Observers • Colorado • Nevada • Wyoming • Kansas • Alaska • Canadian Provinces: • Saskatchewan • Ontario • Quebec • Mexican State of Sonora Finance Committee Protocol Committee Stakeholder Committee HB 1303 Energy and Adaptation

16. Areas of Key Legal Concern Stressed Water Supply & Water Rights / Salmon Recovery Liability for long-term sequestration of CO2 State Impacts on Federal Entities (e.g., BPA, FERC,…) Interstate Trade - Commerce Clause (Constitutional) Tribal/First Nation Treaties & Int’l Agreements (e.g., NAFTA)

17. www.ecy.wa.gov/climatechange