Update

1. Update WESTAR Council Meeting, Boise, ID Patrick CumminsSeptember 26, 2006

2. Western Governors’ Association • WGA represents the Governors of 19 States and 3 U.S. Flag Pacific Islands

3. WGA Resolution on Regional and National Policies Regarding Global Climate Change • Western Governors support local, state, regional, and national programs to reduce anthropogenic greenhouse gases in a manner that: • Is consistent with the findings of scientific research • Will not significantly harm the U.S. economy • Encourages comparable action by major trading partners and key contributors to global emissions

4. Global Climate Change Resolution • Includes support for: • Continued research on global climate change • Carbon sequestration research and implementation • Cost-effective, market-based policies to reduce greenhouse gases • Consideration of state and regional GHG programs if/when a national regime is developed • A voluntary registry to document and track greenhouse gas emissions

5. Clean and Diversified Energy • In 2004, the Governor’s called for the analysis of policy recommendations that would: • Bring 30,000 megawatts of new clean energy online by 2015 • Increase energy efficiency 20% by 2020 • Meet transmission needs over the next 25 years • The Clean and Diversified Energy Advisory Committee (CDEAC) and 8 task forces were formed to develop consensus, incentive based policies to reach these goals • Over 250 diverse stakeholders participated • Report presented to the governors in June 2006 • The CDEAC made 51 incentive-based recommendations

6. Clean and Diversified Energy • Report conclusions: • The governors can meet and likely exceed their 2015 and 2020 goals • Achieving these goals will require a combination of state, regional and federal action • CDEAC recommendations included: • Demonstrate IGCC projects in Western states at altitude • Encourage federal tax credit extensions on renewables • Reforms in the FERC Open Access Transmission Tariff to allow regional transmission planning expansion • Encourage the elimination of rate pancaking • Implement and update energy efficiency standards on appliances and buildings • Support comprehensive integrated resource planning and procurement rules

7. States Leading the Way • WGA is encouraging others to adopt the recommended policies and is tracking progress toward the governors’ goals • Gov. Owens (CO) – Signed legislation to encourage IGCC within the state; Xcel Energy has since announced plans to build a 350 MW IGCC plant • Gov. Napolitano (AZ) – Issued an executive order on energy efficiency with the aim of reducing GHGs to 2000 levels by 2012 • Gov. Huntsman (UT) -- Proposed legislation to set a 20% goal for energy efficiency in Utah by 2015 • Govs. Schwarzenegger (CA) and Freudenthal (WY) signed an MOU on developing IGCC with carbon sequestration and renewable energy in Wyoming • Gov. Gregoire (WA) signed legislation that requires state schools and office buildings to be constructed in a manner that will conserve energy and minimize their environmental impact • Gov. Schwarzenegger (CA) signed the Million Solar Roofs Legislation in August 2006

8. Western Renewable Energy Generation Information System (WREGIS) • Formed in 2004 as a joint effort between WGA and the California Energy Commission • Will issue, track, and verify regional renewable electricity generation and certificates • Scheduled to come online in late 2007

9. Carbon Sequestration Partnerships • WGA is assisting four regional carbon sequestration partnerships • Big Sky • Plains • Southwest • West Coast • The partnerships are engaged in validating sequestration technologies, assessing repository potential, and identifying best management practices • The Big Sky Partnership will inject several thousand tons of CO2 into the Grande Ronde Basalt in eastern Washington as a demonstration project • The Plains Partnership will be using 14.4 million tons of CO2 to test terrestrial sequestration in the region’s wetlands

10. Future Transportation Fuels Initiative • Resolution on Transportation Fuels for the Future passed June, 2006 • 570 million gallons of oil are used each day by the nation’s transportation sector • Regional Task Force will develop a policy roadmap for western alternative fuel development and distribution in the future • Governor’s offices are currently gathering ideas for actions to take in the near, mid, and long-term • The roadmap will be refined by a broad range of stakeholders • Fuels currently being considered include ethanol, bio-diesel, coal-to-liquids, hydrogen, and electricity • Many states have already taken the lead • Gov. Sebelius is chairing the Governors’ Ethanol Coalition • Gov. Schweitzer is working to attract companies to Montana that are committed to producing clean burning liquid fuel from coal

11. Climate Change Impacts on Water • In 2006, WGA helped develop and adopted the Western States Water Council Report, “Water Needs and Strategies for a Sustainable Future” • The report makes recommendations on • Water policy and growth strategies • Infrastructure needs • Indian water rights and negotiated settlements • Preparations for climate change impacts • Coordination between researchers and policy-makers, particularly on ESA

12. Mexico Emissions Inventory • First national EI for Mexico complete and published • Coordinated by WGA (Rich Halvey) with EPA funding • EI is for 1999 • Next Steps • 2004 update • Special studies – mobile sources

13. Western Regional Air Partnership (WRAP) • Voluntary association of 15 states, Western tribes, and federal agencies • Assists Western states and tribes in developing regional haze plans for federal Class I Areas: • State regional haze plans due to EPA in December 2007. • Currently working with 9 member states to develop GHG emission inventories and forecasts • Final products are expected in early 2007 • 4 states already have developed GHG inventories

14. Western Regional Air Partnership (WRAP) • Participating with other states/regions to evaluate options for a multi-state GHG registry • WRAP and Eastern states are leading the effort • Western and Mid-Western states and tribes participating • Building on California Climate Action Registry: ensure consistency and avoid multiple or different state registries • Goal: Operational by late 2007 • Policy neutral system - states and tribes opt-in at their discretion

19. 2018 Base Case Visibility Projections (deciviews) Note: Fire & Dust emissions held constant

21. WRAP region EGU SO2 emissions Data Sources: 1995, 1998, and 2005 from EPA Clean Air Markets Division, 2002 emissions and 2018 projections by Eastern Research Group, and 2018 BART assuming presumptive limits in EPA BART rule on units > 200 MW

22. WRAP region NOx emissions by source category Data Sources: WRAP Forums’ emissions inventories and biogenics from BEIS model

23. BLM prepares for 13,000 new wells in Piceance Basin

24. Summary of key technical data to support regional haze planning & implementation – version 1 on-line mid-October 2006 Supports consultation & interstate emissions/visibility tracking Interactive data displays: Monitoring Emissions Modeling/Source Apportionment Results Ancillary GIS information To assess progress, provides tracking of: Periodic emissions inventories & emissions reductions programs Visibility monitoring data Modeling/Source Apportionment Results Welcome to the WRAP Technical Support System! Getting Started with the TSS Attribution of Haze Results Regional Haze Planning Support Weight of Evidence Checklist User Defined Queries & Analyses Technical Support System http://vista.cira.colostate.edu/tss/