Emma Zinsmeister State and Local Climate and Energy Program Office of Atmospheric Programs

1. 1 Economic Recovery & Federal Climate Policy: Updates, Opportunities, & Resources for Local Governments Emma Zinsmeister State and Local Climate and Energy Program Office of Atmospheric Programs ICLEI Southeast Regional Workshop September 17, 2009 Loudermilk Center, Atlanta, GA

2. 2 Outline • Economic Recovery • Status Update on Federal Climate Policy • EPA Resources and Partnership Programs • Funding Opportunities

3. 3 Economic Recovery • American Recovery and Reinvestment Act (ARRA) 2009 - $787 Billion • One-time, unprecedented level of spending • Tremendous Opportunity • Consider energy efficiency (EE), climate protection, and green workforce development in ALL ARRA spending • ARRA $ provides an excellent opportunity for local governments to build the foundation of EE/climate programs and prepare for potential greenhouse gas (GHG) regulations in the future

4. Status Update on Federal Climate Policy

5. 5 Status Update on Federal Climate Policy • Multiple activities are ongoing that may contribute to GHG regulation and climate policy at the federal level • Proposed Mandatory Greenhouse Gas Reporting Rule • Proposed Endangerment Finding • American Clean Energy and Security Act 2009 (Waxman-Markey) • Senate Energy & Climate Bills What does all of this mean for local governments?

6. 6 Proposed Mandatory Greenhouse Gas Reporting Rule • Background • FY08 Omnibus Appropriations Act – Required EPA to develop and publish a rule requiring mandatory reporting of greenhouse gas emissions above appropriate thresholds in all sectors of the economy. • In order to develop a strong proposal, EPA met with over 250 stakeholder groups, including trade associations, industries, states, and state- and region-based groups. • Status • March 10, 2009 – EPA Administrator signed proposed rule to collect accurate and comprehensive emissions data from large sources in the U.S. to inform future policy decisions. • April 10, 2009 – Proposed rule published in the Federal Register and was open for public comment until June 9, 2009 (60 days). • Public hearings held in Arlington, VA (April 6-7) and Sacramento, CA (April 16). • Currently under OMB review

7. 7 Proposed Mandatory Greenhouse Gas Reporting Rule (cont’d) • Local Government Outreach & Input • March 10 – August 25, 2009 EPA staff met with over 150 local and state governments, regional and tribal organizations, and environmental- and state-based NGOs. • Information sharing through conferences, webinars, and EPA Region-led initiatives. • Approx. 45 of 16,800 comments on rule from local/state governments and local/state based groups. • POTENTIAL Impact on Local Governments • Local Governments could be required to submit an annual GHG report for any facility they own or operate that is subject to the rule. • Landfills and stationary combustion equipment are the types of facilities owned or operated by locals that would most likely trigger applicability. • However, rule is still under review and nothing is certain at this time.

8. 8 Proposed Mandatory Greenhouse Gas Reporting Rule (cont’d) • Next Steps • Completion of OMB review & finalization of rule • Congressional review • Publication in Federal Register • Outreach, education, and training by EPA • Aiming for reporting period to begin Jan. 1, 2010

9. 9 Proposed Mandatory Greenhouse Gas Reporting Rule (cont’d) • More information • Website: www.epa.gov/climatechange/emissions/ghgrulemaking.html • Guide for state & local agencies, text of proposed rule & 2 page fact sheet, regulatory impact analysis, technical support documents, guidance sheets for each subpart, FAQs • Coming soon: Training schedule (once rule is finalized) • Contact for general questions: Kitty Sibold • sibold.katherine@epa.gov • (202) 343-9280

10. 10 Endangerment Finding • Background • April 2, 2007– In Massachusetts v. EPA, the Supreme Court found that greenhouse gases are air pollutants covered by the Clean Air Act. • EPA was required determine whether: • GHG emissions from new motor vehicles cause or contribute to air pollution; • This air pollution may reasonably be anticipated to endanger public health or welfare; or • The science is too uncertain to make a reasoned decision.

11. 11 Endangerment Finding (cont’d) • Status • April 17, 2009 –Administrator signed a proposal with two distinct findings regarding greenhouse gases under section 202(a) of the Clean Air Act • Proposed Endangerment Finding: Current and projected concentrations of the mix of six key GHGs in the atmosphere threaten the public health and welfare. • Cause or Contribute Finding: Combined emissions of CO2, CH4, N2O, and HFCs from new motor vehicles and motor vehicle engines contribute to the atmospheric concentrations of these key GHGs and hence to the threat of climate change. • April 24, 2009 – Proposed endangerment finding was published in the Federal Register and open for public comment until June 23, 2009 (60 days). • Public hearings held in Arlington, VA (May 18) and Seattle, WA (May 21). • Currently reviewing public comments

12. 12 Endangerment Finding (cont’d) • Local Government Input • Approx. 400,000 comments were received from a variety of entities, including local and state governments. • Impact on Local Governments • This action, if finalized, does NOT impose any requirements on industry or other entities. • The proposed endangerment finding is NOT accompanied by a proposed standard for GHG regulation. • It does NOT impose any timetable for issuing regulations. • It does NOT indicate that EPA has made any final decisions about regulating GHGs under the Clean Air Act.

13. 13 Endangerment Finding (cont’d) • Next Steps: • Complete review of public comments & issue response document • Finalize the technical report on science & emissions data • Finalize the finding – no set timeline • More Information: • Website: http://epa.gov/climatechange/endangerment.html • Text of proposed endangerment finding & 2 page fact sheet, technical support document, 2 page summary of supporting science, FAQs • Contact for general questions: • ghgendangerment@epa.gov • (202) 343-9927

14. American Clean Energy and Security Act 2009Waxman-Markey • Background • Comprehensive national climate and energy legislation authored by Reps. Henry Waxman (D-CA) and Edward Markey (D-MA). • Would establish an economy-wide, GHG cap-and-trade system and critical complementary measures to help address climate change and build a clean energy economy by: • Incentivizing reductions in GHG emissions; • Advancing energy efficiency and reducing reliance on oil; • Stimulating innovation in clean coal technology; • Accelerating use of renewable energy (RE) sources; and • Creating strong demand for clean energy technologies and assisting economic recovery and job growth. • Status • March 31, 2009 – Discussion draft released. • May 15, 2009 – Final draft introduced to Energy and Commerce Committee. • May 21, 2009 – Markup and amendments completed; passed by committee. • June 26, 2009 – Approved by the House by a vote of 219-212. • July 6, 2009 – Placed on Senate calendar.

15. American Clean Energy and Security Act 2009 Waxman-Markey (cont’d) • Potential Relevance to Local Governments • Renewable Energy - requires electric utilities to meet 20% of their electricity demand through RE (75% minimum) and EE by 2020. • Smart Grid Technology - promotes deployment and transmission planning and siting. • Building Codes - requires new buildings to be 30% more efficient in 2012 and 50% more efficient in 2016. • Cap and Trade – requires major U.S. sources to reduce GHG emissions 17% by 2020, 42% by 2030 and 83% by 2050 compared to 2005 levels. • Establishes a system of tradable “emissions allowances.” • Allows up to 2 billion tons of offsets annually for compliance system wide. • Revenue from sale of allowances will be used for a variety of purposes, such as protecting consumers from energy price increases, supporting domestic adaptation initiatives, and establishing an EE and RE Worker Training Fund.

16. American Clean Energy and Security Act 2009 Waxman-Markey (cont’d) • More Information • House of Reps. – summary of key provisions: http://energycommerce.house.gov/Press_111/20090724/hr2454_housesummary.pdf • EPA - economic analyses: http://www.epa.gov/climatechange/economics/pdfs/HR2454_Analysis.pdf • Pew Center on Global Climate Change • Potential impacts on agriculture: http://www.pewclimate.org/federal/what-waxman-markey-does-for-agriculture • Potential impacts on coal: http://www.pewclimate.org/docUploads/what-waxman-markey-does-for-coal-sept2009.pdf • Other resources: http://www.pewclimate.org/acesa • Climate Communities – presentations on cap and trade: http://climatecommunities.us/federalissues.html\

17. 17 Senate Energy & Climate Bills • In contrast to the House of Representatives, the Senate is working on separate energy and climate bills. • The American Clean Energy and Leadership Act of 2009 was passed by the Committee on Energy and Natural Resources on June 17, 2009. • Contains significant energy efficiency provisions including greatly strengthened building codes, a renewable electricity standard with an EE component, and new energy efficient product standards. • Sets no GHG reduction requirements. • Climate Bill – Sens. Barbara Boxer (D-CA) and John Kerry (D-MA) plan to introduce bill into committees this month for markup. • Resulting bill will likely be combined with ACSLA to create the Senate counterpart to Waxman-Markey. • If the Senate passes this combined bill, differences between the Senate and House bills will have to be reconciled. A final bill will have to be passed by both sides of Congress before going to President Obama for signature.

18. 18 What does all of this mean for local governments? • The outcome of the ongoing regulatory and legislative processes will determine if federal regulation of GHGs will occur under the CAA, through a cap and trade program, or not at all. • Due to the rapid pace at which climate policy is evolving, it is challenging, yet critical, to stay abreast of the implications for local governments. • EPA has numerous tools, resources, and communication channels to assist local governments with program development and interpreting the federal regulatory landscape. • The time is now for local governments to put into place strong EE and climate protection programs and take advantage ARRA and other funding opportunities.

19. EPA Resources and Partnership Programs

20. EPA Local Climate and Energy Program Goals • Assist localities (e.g., regional governments, counties, municipalities, and small communities) to: • Identify credible information on key climate strategies • Reduce greenhouse gas emissions while achieving multiple benefits • Understand, integrate, and maximize multiple benefits in planning and designing cost-effective programs • Learn from peer to peer exchange

21. Multiple Benefits Framework for Climate - Clean Energy Local Governments can achieve: Air quality improvements Greenhouse gas emission reductions Energy security and reliability Economic development Public health Quality of life EPA Local Climate and Energy Program Approach Clean Energy: Energy Efficiency, Renewable Energy, Clean Distributed Generation

22. Roadmap for Locals: Achieving GHG Reductions using EPA Tools Create Collaboratives Local Clean Energy Strategies Guide, Peer Exchanges Establish Goals Clean Air Climate Protection Software, eGRID Clean Energy Resources Database, Clean Energy/Climate Policy Maps, SEP Toolkit, Heat Island Actions Database, Heat Island Compendium, Local Clean Energy Strategies Guide, Local Government Webcasts, ENERGY STAR, other EPA Partnerships Identify Policies & Programs COBRA, GHG Equivalency Calculator, Local Government Webcasts, LBE Guide, Multiple Benefits Guide, Biomass Toolkit Design & Analyze Implement & Evaluate Progress M&V Guidance, ENERGY STAR Benchmarking / Portfolio Manager, Clean Energy/Climate Policy Maps, GHG Equivalency Calculator

23. Key Programmatic Resources • Local Clean Energy Strategies Guides www.epa.gov/cleanenergy/energy-programs/state-and-local/local-best-practices.html • Local Clean Energy Webcasts www.epa.gov/cleanenergy/energy-programs/state-and-local/webcast.html • Clean Energy Resources Database for Local Governments http://cfpub.epa.gov/ceird/index.cfm?fuseaction=local.search_js

24. Local Clean Energy Strategies Guides • 15 strategies in 4 areas • Energy Efficiency • Energy Supply • Transportation • Urban Planning and Design • Available draft guides • Energy Efficiency in Affordable Housing –Green Power Procurement • Energy Efficient Product Procurement –On-site Renewables • Combined Heat and Power –Landfill Gas to Energy • Energy Efficiency in Municipal Operations • Future guides • Energy Efficiency in K-12 Schools • Transportation Control Measures • Efficient Fleets • Smart Growth http://www.epa.gov/cleanenergy/energy-programs/state-and-local/local-best-practices.html

25. Energy Efficiency in Municipal Operations Guide Snapshot of planning and design approaches to energy efficiency content: Improving energy efficiency in existing and new local government facilities Incorporating energy efficiency in new and renovated “green” buildings Improving energy efficiency in local government operations On-Site Renewable Energy Generation Guide Snapshot of renewable energy measures and technologies content: Wind Solar Geothermal Biomass Landfill gas and other biogas Solid waste (waste-to-energy) Low-impact hydropower Fuel cells Sample Content: Local Climate and Energy Guides www.epa.gov/cleanenergy/energy-programs/state-and-local/local-best-practices.html

26. Local Clean Energy Peer Exchange Webcasts, Listserv Webcasts: www.epa.gov/cleanenergy/energy-programs/state-and-local/webcast.html • Monthly webcasts provide: • An overview of the relevant EPA programs and resources • Presentations by 1-2 local practitioners about their experiences implementing similar projects • Q and A sessions • Webcasts are posted online and can be used as resource • Examples of past webcasts include: • ARRA 2009 Clean Energy Opportunities • Landfill Gas to Energy • Green Power Procurement • Energy Efficiency Procurement • Upcoming webcasts topics include: • Energy efficiency in K-12 schools, Transportation Control Measures, Combined Heat and Power, Clean Energy Workforce Development Listserv: to sign up, visit for more information - www.epa.gov/cleanenergy/energy-programs/state-and-local/listserv.html • Provides information on new policy developments; highlights technology advances; shares information on new studies, reports, and upcoming events; and notes new funding opportunities

27. EPA Guidance links Recovery Funds with Energy Programs • ARRA 2009: A Guide to Renewable Energy and Energy Efficiency Incentives for Local and Tribal Governments • Companion March 5, 2009 webcast recording available online • http://www.epa.gov/cleanenergy/energy-programs/state-and-local/webcast.html • ARRA 2009: State and Local Guide to U.S. EPA Climate and Energy Program Resources http://epa.gov/cleanenergy/energy-programs/state-and-local • Information about Tax Credits www.energystar.gov/taxcredits • Portfolio Manager Implementation Resources http://www.energystar.gov/benchmark • Rapid Deployment Energy Efficiency Toolkit http://epa.gov/cleanenergy/energy-programs/napee/index.html

28. EPA Partnership Opportunities for Locals Help Local Governments: • Learn from Best Practices • Emphasize Co-Benefits • Integrate Planning • Prioritize EE as a Resource These programs offer: • Direct Technical Support • Peer Exchange • Tools and Guidance Collision Repair Campaign

29. Key EPA Climate and Energy Programs • Local Climate and Energy Program:http://epa.gov/cleanenergy/energy-programs/state-and-local/local.html • ENERGY STAR for local governments:http://www.energystar.gov/index.cfm?c=government.bus_government_local • ENERGY STAR Residential Program:www.energystar.gov/homeimprovement • Combined Heat and Power:http://epa.gov/chp/ • Green Power Partnership:http://www.epa.gov/greenpower • Landfill Methane Outreach Program:http://epa.gov/lmop/ • Smart Growth Program:http://epa.gov/smartgrowth • Heat Island Reduction Program: http://epa.gov/heatisland/ • Office of Transportation and Air Quality:http://www.epa.gov/otaq/

30. White House Council on Environmental Quality (CEQ)Recovery Through Retrofit • On May 26, 2009, at a meeting of the Middle Class Task Force, Vice President Biden asked: • "the Council on Environmental Quality to report back to the Task Force in 90 days with proposals that expand [green jobs] opportunities, and boost energy savings for the middle class." • 13 federal agencies (EPA, DOE, DOL, DoEd, HUD, etc.) have been meeting regularly to develop an action plan for Recovery through Retrofit – weatherization / EE retrofits of 1 million homes per year • Demand creation & financing • Workforce capacity • Innovation • Draft report presented to Middle Class Task Force August 21, 2009 • Final to be released October 2009 with specific proposals for collaboration, action steps, funding

31. HUD-DOT-EPASustainable Communities Partnership • March 2009: HUD and DOT establish partnership • June 2009: EPA Joins partnership & principles established • September 17-18: Secretaries Dononvan and LaHood and Administrator Jackson tour sustainable communities (Chicago, IL; Denver, CO; and Dubuque, IA) • Sustainable Community Principles: • Provide more transportation choices • Promote equitable, affordable housing • Enhance economic competitiveness • Support existing communities • Coordinate policies and leverage investment • Value communities and neighborhoods

32. ENERGY STAR • Joint program of U.S. EPA and U.S. DOE helping save money and protect the environment through energy efficient products and practices. • Cost-free climate protection / energy efficiency resources: • Tools to benchmark and track energy performance in buildings • Energy Management Guidelines • Assistance for architects on designing energy efficient buildings • Case studies and best practices from leaders • Calculators to track returns on energy efficiency investments • Onsite and Online Training Sessions • Materials to communicate with citizens, employees, stakeholders, and the media about energy efficiency efforts. • How can local governments benefit from ENERGY STAR: • Sign up for the Energy Star Challenge • Benchmark government buildings • Reduce energy use in homes www.energystar.gov

33. The ENERGY STAR Challenge • The ENERGY STAR Challenge encourages everyone to improve the energy efficiency of America’s buildings by 10% or more. • Off-the-shelf campaign and tools to promote energy efficiency in your community • More than 150 cities and counties have signed on • In a typical city or county, local government operations may account for only 5% of greenhouse gas emissions…engaging the private and residental sector is critical. • Louisville, KY • Lead by example and improve the energy efficiency of your own buildings. • Promote energy efficiency to constituents. • Sign up online and access the toolkit at: www.energystar.gov/challenge

34. Home Performance with ENERGY STAR • Sponsored by a utility, state or local government • A network of specially-trained contractors • Evaluate homes using state-of-the-art equipment • Recommend comprehensive energy improvements • Ready to complete the work or refer to someone who can • Quality assurance program checks work of participating contractors to verify program standards are met • Homeowner chooses and pays for improvements based on credible information • www.energystar.gov/homeimprovement

35. ENERGY STAR for Buildings • Offers proven solutions to help building owners and managers reduce energy consumption • Program for new construction and existing buildings • Works in markets with a focus on: • Public sector (government, K-12, higher ed) • Healthcare • Small business and congregations • Commercial property (offices, retail, hotels) • Provides free online benchmarking tool for existing buildings– Portfolio Manager www.energystar.gov/government

36. Funding Opportunities

37. Climate Showcase Communities Grant 2009 Appropriations Bill • Administered by Local Climate and Energy Program • $10M Competitive grant to assist local communities in pursuing their own climate change initiatives • Goal is to achieve documentable, replicable GHG reductions from a range of activities • Program will: • Foster collaborative partnership between communities and with the Federal government • Ensure federal investments spur local innovation and produce concrete results • Promote transfer of best practices among localities • Identify strategies to overcome institutional barriers to local governments achieving energy use and GHG reductions • Solicitation period closed in July • Grantees will be awarded in January 2010 http://www.epa.gov/RDEE/energy-programs/state-and-local/showcase.html

38. Climate Showcase Communities Connections with ARRA Funding • Focus and Goals • ARRA: funds for energy reductions, implementation only • Showcase Grants: focus on GHG reductions (broader than energy), planning through implementation • Timelines • ARRA: funds already being distributed, must be spent within 18 months (by ~12/2010), forces emphasis on “shovel ready” • Showcase Grants: funds available 1/2010, 2-3 year project periods, allows longer-term planning, assessment, education, evaluation • Support and Peer Exchange • ARRA: limited direct support available (due to volume), no identified mechanisms for peer-to-peer exchange, no replicability requirement • Showcase Grants: hands-on technical support and training for all recipients, multiple peer-exchange venues, replicability is goal • ARRA and Showcase Grants Serve as Complements • ARRA allows mass implementation, sows seeds for long-term change • Showcase Grants grow projects into sustainable, replicable models of success • Lessons learned from ARRA projects inform Showcase Communities, serve as additional source of results and best practices • Coordinating reporting metrics saves effort for feds and funding recipients

39. Green Workforce Development • Workforce Investment Act (WIA) • Funds a number of different workforce development programs, some funding may cover green job related training • Department of Labor, $3.95 billionARRA funds • Training for Careers in Energy Efficiency and Renewable Energy • Funding for research, labor exchange, and job training projects that prepare workers for careers in energy efficiency and renewable energy, as described in the 2007 Green Jobs Amendment to the WIA. • Sets aside $500 million of WIA funds for Green Jobs • EPA Resources • State Technical Forum resources include a background paper, resource list, and case studies of state and local green job programs. http://www.epa.gov/cleanenergy/energy-programs/state-and-local/state-forum.html#twoa

40. Open Solicitation under Workforce Investment Act • Pathways Out of Poverty (SGA/DFA PY 08-19) • $150 million in grant funds for projects that provide training and placement services to provide pathways out of poverty and into employment within EE and RE industries. • Grantees selected from two separate types of applicants will be funded through this solicitation: (1) national nonprofit entities with networks of local affiliates, coalition members, or other established partners; and (2) local entities. • Intend to fund grants ranging from approximately $3 to $8 million for national grantees, and grants ranging from approximately $2 to $4 million for local grantees. • Issue Date: June 24, 2009 • Closing Date: September 29, 2009 http://www.doleta.gov/grants/pdf/SGA-DFA-PY-08-19.pdf

41. EPA National Clean Diesel Campaign • Regular EPA grant program; received $300 million ARRA funds • Promotes diesel emissions reduction strategies to improve air quality and public health http://www.epa.gov/cleandiesel/ • The State and Local Clean Diesel Toolkit provides an array of tools and resources for designing, funding and evaluating programs that reduce diesel engine emissions http://www.epa.gov/otaq/diesel/slt/basicinfo.htm • A special Recovery Act web site for the National Clean Diesel Campaign is available. http://www.epa.gov/otaq/eparecovery/index.htm • The Diesel Emission Quantifier (DEQ) helps estimate cost effectiveness and environmental impact of emission reduction technologies http://cfpub.epa.gov/quantifier/ • Office of Transportation and Air Quality (OTAQ) • The OTAQ website contains information on energy use and emissions associated with different fuels and technologies. http://www.epa.gov/otaq/ • OTAQ’s State and Local Resources site offers tools and information tailored to the needs of local governments. http://www.epa.gov/otaq/stateresources • Local Climate and Energy Program • Strategy Guide on Efficient Fleets, coming soonhttp://www.epa.gov/cleanenergy/energy-programs/state-and-local/local-best-practices.html

42. EPA Brownfields Program Regular solicitations Assessment Grants: http://www.epa.gov/brownfields/assessment_grants.htm Revolving Loan Fund Grants: http://www.epa.gov/brownfields/rlflst.htm Cleanup grants http://www.epa.gov/brownfields/cleanup_grants.htm Job Training Grants: http://www.epa.gov/brownfields/job.htm Training, Research, and Technical Assistance Grants: http://www.epa.gov/brownfields/trta.htm EPA collaborates with other federal partners, and state agencies to identify and make available resources that can be used for brownfields activities. EPA also provides technical information on brownfields financing matters. EPA’s Brownfields Program: http://www.epa.gov/brownfields/index.html 42

43. Looking Ahead • Local governments play a key role in climate and energy issues. • Every day, local governments make decisions that impact energy security and reliability, air quality, greenhouse gas emissions, economic development, public health, and quality of life. • Local policies and programs complement, supplement, and enforce policies and action by other levels of government and the private sector. • Local governments are a high priority of the current administration. • Administrator Jackson has made communities a top EPA priority, and the Agency is engaging in a number of initiatives to support local governments and champion local interests at the federal level. • ARRA funds provide a tremendous opportunity for local governments to build and strengthen EE and climate protection programs in ways that will provide benefits beyond the economic recovery period. • EPA has a number of programs, resources, and tools to help local governments take advantage of the opportunities available.

44. 44 EPA Local Climate and Energy Contacts Emma Zinsmeister zinsmeister.emma@epa.gov 202-343-9043 Neelam R. Patel patel.neelam-r@epa.gov 202-343-9384 Andrea Denny denny.andrea@epa.gov 202-343-9268 Main Website: www.epa.gov/cleanenergy/energy-programs/state-and-local/local.html State and Local Climate and Energy Listserv: www.epa.gov/cleanenergy/energy-programs/state-and-local/listserv.html