California’s Distinctive Voluntary/Mandatory Approach to Climate Change

1. California’s Distinctive Voluntary/Mandatory Approach to Climate Change Law Seminars International January 11, 2007 Joel Levin Vice President

2. Main Topics • What is the CA Registry and how does it work? • What is the role of voluntary vs mandatory action in California’s climate change policies? • Why should companies participate in the CA Registry?

3. Background of the CA Registry • Spearheaded by a coalition of forward-thinking CEOs • Non-profit public/private partnership created by state legislation in 2001 • Created a verifiable “gold standard” for greenhouse gas accounting across business sectors • Companies can establish a state-recognized baseline • Encourages voluntary public reporting and early actions for reduction • Board represents business, government, NGOs

4. About the Registry • Our members are some of the largest companies and leaders in their industries • A center for thought leadership • Over 200 million tons of CO2e registered • Collaborate with world leaders on climate change

5. Member Services • User-friendly software and technical support to simplify tracking GHGs • Annual conference • Educational services • A stakeholder voice in policy • Assistance in communicating your environmental leadership

6. Three Step Process • Gather data • CO2 first 3 years, then all 6 Kyoto gases (CO2, CH4, N2O, HFCs, PFCs, SF6) • Direct stationary, mobile, process and fugitive emissions • Indirect emissions: i.e. purchases of electricity and steam • California, national or international reporting • Tracking mostly through utility bills and vehicle fuel • Certify data using third-party certifiers • Report data publicly

7. Costs of Participation Annual Participation Fee Annual Certification Fee Staff time

8. Aerospace Raytheon Beverages Anheuser Busch Brown Forman Chemicals Dow Chemical Cities City of Los Angeles City of Sacramento City and County of San Francisco Education California State University Los Angeles Community College District Natomas Unified School District Stanford University University of California Electric Power AES Calpine Corporation Constellation Energy FPL LS Power Mirant NRG Energy Reliant Energy Federal Government United States Air Force, Space and Missile Command Examples of Registry Members 200 members total 200 million tons registered = annual emissions of Turkey

9. Financial Services CalPERS Food Processing Clif Bar & Co Frito-Lay Hershey Chocolate Hilmar Cheese Forestry California Department of Forests Collins Pine Company The Conservation Fund Van Eck Foundation Health Care Baxter Genentech Catholic Healthcare West Guidant Johnson & Johnson Kaiser Permanente Investor-Owned Utilities Pacific Gas and Electric PacifiCorp San Diego Gas & Electric Southern California Edison Southern California Gas Company Manufacturing Corning Incorporated Eastman Kodak Hewlett-Packard USG Corporation Media CBS Metals TAMCO Mining Rio Tinto Borax Examples of Registry Members

10. Non-Profit Organizations Energy Foundation Environmental Defense Natural Resources Defense Council Pacific Forest Trust The Climate Trust Union of Concerned Scientists Oil/Gas Aera Energy BP Chevron ConocoPhillips El Paso Corporation Occidental of Elk Hills Shell Oil Company Valero Ports Port of Los Angeles Public Utilities Austin Energy Anaheim Public Utilities Burbank Water and Power East Bay Municipal Utility District Glendale Water & Power Imperial Irrigation District Los Angeles Department of Water and Power Northern California Power Agency Pasadena Water & Power Platte River Power Authority Riverside Public Utilities Roseville Electric Sacramento Municipal Utility District Seattle City Light Silicon Valley Power Sonoma County Water Agency Turlock Irrigation District Examples of Registry Members

11. Retail Safeway Services ACE Technologies AgCert Barg Coffin Lewis & Trapp LLP Better World Group Constructive Technologies Group Enviance Environmental Software Providers ICF Consulting Potomac Hudson Engineering Science Applications International Corporation State Government California Energy Commission California Environmental Protection Agency California Public Utilities Commission Solid Waste Allied Waste NorCal Waste Systems Republic Services Waste Management, Inc. Transportation AC Transit Telecommunications AT&T QUALCOMM Verizon Water Park Water Company Examples of Registry Members

12. AB 32: California Global Warming Solutions Act • Mandates a 25% reduction in GHG emissions by 2020 • Gives Air Resources Board broad authority to regulate all “significant” sources and categories of sources • Mandatory reporting rule issued by January 1, 2008 • Begin with largest sources • “To maximum extent feasible” incorporate California Registry standards and protocols

13. AB 32: Registry Participation • “Entities that voluntarily participated in CA Registry prior to December 31, 2006 and have developed a GHG emission reporting program shall not be required to significantly alter their reporting or verification program except as necessary to ensure that reporting is complete and verifiable…”

14. AB 32: Early Action Benefits • Verified reductions reported to the Registry may be tradable or reduce compliance obligations • By June 30, 2007, CARB must publish list of early action measures and ensure that entities get “appropriate credit for early voluntary reductions.”

15. Why should companies jointhe Registry? • Protection for early actions • Lock in your reporting requirements • Have a stakeholder voice in policy decisions • Save money on energy • Access to software and technical support • Recognition as a global environmental leader • It’s the right thing to do

16. Joel Levin Vice President, Business Development jlevin@climateregistry.org Contact Information California Climate Action Registry 515 S. Flower St. Suite 1640 Los Angeles, CA 90071 213-891-1444