Presentation to

1. STATUS UPDATE LED STATEWIDE GREENHOUSE GAS INVENTORY PROJECT Presentation to LSU Center for Energy Studies Industry Associates By Mike D. McDaniel, Ph.D. LSU Center for Energy Studies March 12, 2009

2. LED GREENHOUSE GAS INVENTORY PROJECT MEETING AGENDA • Project Background • GHG Regulation Update • Project Status • Task1 – GHG Inventory • Task 2 – Other States Activities • Task 3 – High Level Economic Impacts Assessments • Task 4 – Recommendations • Questions/Discussion

3. LSU CES Proposal

4. LED GREENHOUSE GAS INVENTORY PROJECT GHG Regulations Developments • Obama Administration • New Energy/Environment Team • Jackson, Chu, Browner, Sutley, Salazar • New Congress • Boxer (Chair, Senate Environment & Public Works Com.) • Wants climate bill by year end before the Copenhagen Climate Conference • Waxman (Chair, House Energy & Commerce Com.) • Wants climate bill by Memorial Day • Markey (Chair, House Energy and Environment Subcom.) • Markey retains chair of Select Com. On Energy Independence and Global Warming • Scalise added to House Energy and Commerce Comm. (Energy & Environ Subcom.) • Pelosi and Reid call for one-bill energy and climate strategy • EPA • Proposed CO2 geological sequestration rule Jul08 • Required by 2008 Approp. Act to develop mandatory GHG reporting rule by Jun09 • Johnson Dec08 memo pans regulation of CO2 under CAA PSD per EAB Deseret decision • Obama instructs EPA to reconsider CA waiver for regulation of vehicle GHG emissions • Announcement of proposed national GHG inventory and reporting rule (March 10) • Internal EPA document shows endangerment finding on fast track (proposed April 30)

5. LED GREENHOUSE GAS INVENTORY PROJECT Project Purpose and Goals • Purpose: • The overarching purpose of the proposed work is to help prepare Louisiana for the possible federal regulation of greenhouse gases (GHG) and to assure that the state’s economic competitiveness is not compromised and that economic development opportunities are recognized. • Goals (Tasks): • Development of a comprehensive state-wide greenhouse gas inventory. • Conduct a thorough review of measures being taken or contemplated by other states to accommodate climate change concerns or expected federal greenhouse gas regulations. • Prepare a high-level assessment of the impacts of the most likely federal greenhouse gas regulatory schemes on Louisiana’s economy. • Prepare a list of potential state and industry strategies for responding to requirements and opportunities brought by federal greenhouse gas regulation.

6. Stakeholder Involvement Project Advisory Team

7. Scope of Work Task 1. – Development of a Comprehensive State-Wide Greenhouse Gases Inventory • Ag Module Users Guide • CO2 from Fossil Fuels Users Guide • Coal Users Guide • Industrial Processors Users Guide • Land Use Change and Forestry Users Guide • Mobile Combustion Users Guide • Natural Gas and Oil Users Guide • Solid Waste Users Guide • Stationary Combustion Users Guide • Wastewater Users Guide • Projection Tool Users Guide • Synthesis Tool Users Guide

8. Scope of Work Task 1. Development of a Comprehensive State-Wide Greenhouse Gas Inventory.

9. Findings *228.3 MMTCO2e

10. Findings TOP TWELVE STATES EMISSIONS (2005) (MILLION METRIC TONS OF CO2) Data Source: EIA, 2008.

11. Findings

12. Findings

13. Findings *1990 levels by 2020 *New Obama Administration Goal = 14% reduction from 2005 levels by 2020. * 80% reduction by 2050

14. Findings * FFC = Fossil Fuel Combustion

15. Findings

16. Findings 2005 Energy CO2 Emissions by State and Industrial Sector for Fossil Fuel Combustion MILLION METRIC TONS CO2 Data Source: EPA, 2008

17. Scope of Work Task 1. Development of a Comprehensive State-Wide Greenhouse Gas Inventory. • VERY PRELIMINARY GHG INVENTORY REPORT OUTLINE • EXECUTIVE SUMMARY • TABLE OF CONTENTS • 1. INTRODUCTION • 1.1 BACKGROUND • 1.2 PURPOSE OF STUDY • 1.3 APPROACH • 2. METHODOLOGY • 2.1 BASIC HIGH-LEVEL INVENTORY TOOLS • 2.2 SOURCE/SECTOR-SPECIFIC INVENTORY METHODS • 2.3 QUALITY ASSURANCE/QUALITY CONTROL PROCEDURES • 3. RESULTS • 3.1 STATE-LEVEL SUMMARY • 3.1.1 Louisiana Greenhouse Gas Emissions Inventory • 3.1.2 Trends in Carbon Dioxide Emissions from Combustion of Fossil Fuels • 3.2 SECTOR/SOURCE-SPECIFIC EMISSIONS INVENTORIES • 3.2.1 Electrical Generation and Consumption • 3.2.2 Transportation • 3.2.3 Commercial Buildings • 3.2.4 Residential Buildings • 3.2.5 Key Industrial Sectors/Processes • 3.2.5.1 Key Industry Sectors • Basic Chemical Manufacturing • Pulp, Paper, and Paperboard • Petroleum Refining • Fertilizer Manufacturing • Oil and Gas Exploration, Production and Delivery • 3.2.5.2 EPA State Inventory Tool Industrial Processes

18. Scope of Work Task 1. Development of a Comprehensive State-Wide Greenhouse Gas Inventory. 3.2.6 Agriculture 3.2.6.1 Methane Emissions from Domesticated Animals 3.2.6.2 Manure Management 3.2.6.2 Agricultural Soils Management 3.2.6.3 Rice Cultivation 3.2.6.4 Agriculture Residue Burning 3.2.7 Land-use Change and Forestry 3.2.7.1 Forest Carbon Flux 3.2.7.2 Liming of Agricultural Soils 3.2.7.3 Urban Trees 3.2.7.4 N20 from Settlement Soils 3.2.7.5 Forest Fires 3.2.7.6 Landfilled Yard Trimmings and Food Scraps 3.2.8 Waste Management 3.2.8.1 Municipal Solid Wastes 3.2.8.2 Wastewater Treatment 3.3 GREENHOUSE GAS EMISSIONS PROJECTIONS 4. KEY TERMS AND ACRONYMS 5. REFERENCES

19. Scope of Work Task 2. Review and Evaluation of Activities Undertaken by Other States to Accommodate Possible Greenhouse Gas Regulation and/or Climate Change Concerns Regional Initiatives States with Climate Plans States with GHG Registries States with Climate Policy Groups States with GHG Emissions Targets Source: Pew Center on Global Climate Change 17FEB09

20. Scope of Work Task 2. Review and Evaluation of Activities Undertaken by Other States to Accommodate Possible Greenhouse Gas Regulation and/or Climate Change Concerns Renewable Portfolio Standards (RPS) Vehicle Greenhouse Gas Emissions Standards Residential Building Energy Codes Commercial Building Energy Codes Source: Pew Center on Global Climate Change

21. Scope of Work Task 2. Review and Evaluation of Activities Undertaken by Other States to Accommodate Possible Greenhouse Gas Regulation and/or Climate Change Concerns

22. Scope of Work Task 3. High-Level Assessment of the Impacts of the Most Likely Federal GHG Regulatory Schemes on Louisiana’s Economy Preliminary High-Level Assessments of Potential Impacts – Dr. Dismukes Work Will Commence Near Completion of GHG Inventory Some Initial Work Begun on Electric Utilities Considerable Number of Economic Impact Assessments of Climate Bills Proposed Last Year

23. Scope of Work Task 3. High-Level Assessment of the Impacts of the Most Likely Federal GHG Regulatory Schemes on Louisiana’s Economy

24. Scope of Work Task 3. High-Level Assessment of the Impacts of the Most Likely Federal GHG Regulatory Schemes on Louisiana’s Economy

25. Scope of Work Task 3. High-Level Assessment of the Impacts of the Most Likely Federal GHG Regulatory Schemes on Louisiana’s Economy Source: Peter Orszag (CBO) testimony before U.S. House of Representatives Committee on Ways and Means, September 18,2008.

26. Scope of Work Task 4. Development of Recommendations for Potential State and Industry Strategies • This task will employ information developed in Tasks 1-3 to develop recommended strategies for the State and industry for responding to requirements and opportunities brought by federal GHG regulation. • The recommendations will be developed within the context of economic competiveness with other states given Louisiana’s particular situation and actions being taken or proposed by other states.

27. Proposed Project Schedule

28. Questions/Discussion/Suggestions?