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					   Overview of Greenhouse Gas
Reduction Accord and Energy Security
 and Climate Stewardship Platform
12 States
     Illinois
     Indiana
     Iowa
     Kansas
     Michigan
     Minnesota
     Missouri
     Nebraska
     North Dakota
     Ohio
     South Dakota
                     12-State MGA Footprint plus Manitoba and Ontario
     Wisconsin
                 Governors’ First Steps

• Co-chairs: WI Gov. Jim Doyle (D) and MN Gov. Tim Pawlenty (R)
• Milwaukee, WI -- November 14-15, 2007
• Funding from Joyce Foundation
• Three stakeholder advisory groups developed recommendations: Power
  Sector, Bioeconomy & Transportation, and Carbon Markets
• Establishment of Accord and Platform
 Midwestern Greenhouse Gas
     Reduction Accord
• Midwestern version of RGGI and WCI

• IA, IL, KS, MI, MN, WI & Province of
  Manitoba as full signatories

• IN, OH, SD and Province of Ontario as
States Covered by GHG Accords =
50% of population + > 50% of GDP

                              Map Source:
• Establishes GHG reduction targets and timeframes

• Develop a market-based and multi-sector cap-and-
  trade mechanism to help achieve GHG reduction

• Establishes a advisory groups composed of
  representatives from the public, private, non-
  governmental institutions to make
  recommendations to jurisdictional leaders
           Accord Timeline
July 2008 – Establish targets for GHG emission

November 2008 – Complete development of
  proposed Cap & Trade agreement and model

July 2010 – “Complete the undertakings”
                                            Jan. ‘09:
RGGI                                        Compliance Date

                                            Jan. ‘09:
               California                   Scoping Plan

                                           Aug. ‘08:
    Plans                   WCI            Projected Model
 Established                               Date Announced

                                           Nov. ‘08:
                                  Accord   Projected Model
                                           Date Announced
          Accord Sub-groups

•   Scope
•   Target-Setting, Data & Reporting
•   Modeling
•   Allowances
•   Offsets
                          Accord Stakeholders
•3M                          •Kansas State University        •North Dakota Farmers Union
•Alcoa Inc.                  •Kansas Corporation             •NRDC Midwest Program
•Archer Daniels Midland      Commission                      •NSP-Minnesota
Company                      •Manitoba Hydro                 •Office of Gov. Blagojevich
•BP America                  •Manitoba Science,              •Office of Gov. Pawlenty
•Clean Wisconsin             Technology, Energy and Mines    •Office of Gov. Daniels
•CMS                         •Michigan Dept. of              •South Dakota Dept. of
•ConocoPhillips              Environmental Quality           Environment and National
•Core Energy                 •Midwest Generation LLC         Resources
•Energy Development          •Minnesota Chamber of           •State of Wisconsin Dept. of
Initiative                   Commerce                        National Resources
•Environment Illinois        •Missouri River Energy          •The Dow Chemical Company
•Environment Ohio            Services                        •The Land Institute
•Illinois AFL-CIO            •National Wildlife Federation   •The University of Iowa
•Iowa Farm Bureau            •NewPage Corporation            •Western Michigan University
•Izaak Walton League of      •North Dakota Dept. of          •Wisconsin Public Power Inc.
America                      Agriculture
             Keys to Success

•   Leadership from governors
•   Multi-sector approach
•   Advisory/stakeholder input
•   Participant and observer status
•   Potential for new jobs
•   Cap-and-trade plus parallel development
    of complementary policies
      Energy Security and Climate
         Stewardship Platform
•   Accord is a part of broader energy initiative

•   Comprehensive in scope, integrated in approach
    and ambitious in its measurable goals and

•   Combined – Accord and Platform uniquely
    positions Midwest as leader in energy and
    climate issues
               Platform Elements
•   Guiding Principles and Key Strategies
•   Measurable Goals, Objectives & Policy
         1.   Efficiency
         2.   Bio-based products and transportation
         3.   Renewable electricity; and
         4.   Advanced coal with CCS.
             Advisory Groups
• Energy Efficiency

• Bioeconomy & Transportation

• Renewable Electricity, Advanced Coal and
  Carbon Capture
                         Platform Stakeholders
•Abengoa Bioenergy Corporation         •ICM, Inc.                                 •Minnesota Power
•Alliant Energy                        •Illinois DCEO                             •Minnesota Public Utilities Commission
•American Council for an Energy-       •Illinois Farm Bureau                      •OH Air Quality Development Authority
Efficient Economy                      •Indiana Wildlife Federation               •Ohio Dept. of Agriculture
•American Electric Power               •International Paper                       •Ohio State University
•American Wind Energy Association      •Iowa Association of Municipal Utilities   •Plum Creek Timber Co.
•Baxter Healthcare                     •Iowa Department of Public Safety          •Poet
•Builders Association of Manitoba      •Iowa Environmental Council                •Public Service Comm. Of WI
•CC 5-6 Technologies                   •Iowa Renewable Fuels Association          •SD Utilities Commission
•Center for Energy & Environment       •Iowa State University                     •Sieben Energy Associates
•Centerpoint Energy Minnegasco         •Johnson Controls, Inc.                    •SMMPA
•Chippewa Valley Ethanol Company       •Kansas Geological Survey                  •State of Michigan
•CHS Foundation Board                  •Madison Gas & Electric Company            •The Nature Conservancy
•Citizens Utility Board                •Manitoba Dept. of Energy, Science, and    •United Mine Workers of America
•Clean Air Task Force                  Technology                                 •University of Dayton
•Clean Wisconsin                       •Manitoba Hydro                            •University of Illinois
•DTE Energy                            •Medtronic, Inc.                           •University of Minnesota
•Duke Energy                           •Michigan Environmental Council            •Virent Energy Systems
•Ecology Center                        •Michigan Office of Geological Survey      •Wal-Mart
•Energy Advocate                       Michigan Municipal Electric Assoc. -       •Westar Energy
•Energy Center of Wisconsin            Michigan Public Service Commission         •Wind on the Wires
•Environmental Law and Policy Center   •Michigan State University                 •WISCAP
•General Motors Corporation            •MidAmerican Energy Holdings Co.           •Wisconsin Clean Cities
•Government of Manitoba                •Midwest Ag. Energy Network                •Wisconsin Energy Conservation Corp.
•Great River Energy                    •MEEA                                      •Wolverine Power Cooperative
•IBEW Local 2150                       •Midwest ISO
                Energy Efficiency
Goal: Meet at least 2% of regional annual retail sales of
  natural gas & electricity via efficiency by 2015 and
  each year thereafter.
   • Measured annually by baseline of rolling average
     of previous three years retail sales.
   • C02 Savings = eliminate growth in C02 from
     electricity & gas after 2015
   • Most aggressive regional commitments in North
                Energy Efficiency
• Organized into 4 subgroups:
   – Energy Efficiency potential studies
   – Utility-related policies
   – Building codes, appliances standards & governments
     leading by example
   – Best practices
• Fleshing out policy options which will be analyzed by
  Center for Climate Strategies
• CCS will complete their analysis by Sept.-Oct.
• In October MGA’s model will enable Advisory Group
  to determine packages of policies that achieve MGA’s
  2% goal
     Bio-economy & Transportation
Goals by 2025:
• Increase availability of low-carbon fuels
  by 10-fold
• Reduce fossil fuel inputs to biofuels by half
• Meet half the region’s transportation demand with
  biofuels and other low-carbon fuels
• Midwest will achieve highest biofuel market
  penetration anywhere
            Renewable Electricity
• Goal: By 2030, 30 percent of region’s electricity
  consumed comes from renewable sources

Most aggressive regional commitments in North
               Renewable Electricity
• Objectives include:
   • Expanding the region’s domestic production of wind turbines, towers
     and blades, solar technologies and other renewable energy
   • Make most efficient use of the existing transmission infrastructure
     and develop new infrastructure to accommodate the region’s
     economic renewable electricity
   • Ensure retention of local economic benefits from wind and other
     renewable power development
   • Maximize cost-effective renewable electricity production in the region
     and its integration on the grid
             Advanced Coal w/CCS
• By 2012: A multi-jurisdiction CO2 pipeline sited and
• By 2015: Commercial IGCC with CO2 capture using both
  eastern & western coals by 2015 (MGA states have 25% of
  U.S. recoverable reserves).
• By 2020: all new coal plants have CCS.
• By 2050: entire coal fleet is transitioned to CCS.
• Regional commitments rival those of the European Union
  Basic Scope of Work for Each Advisory Group

Quantifiable Policy Measures
• Identify, characterize, model, prioritize and recommend quantifiable policy
  measures to governors and premier’s staff to achieve MGA goals.
   – Recommend policy measures to MGA Greenhouse Gas Accord
      advisory group to complement cap-and-trade in achieving broader
      regional emissions reductions targets and also to reduce the cost of
      the cap-and-trade program itself.

Other Initiatives
• Identify, develop and, where appropriate, begin implementing critical
   initiatives that achieve Platform’s goals (e.g., technical assessments,
   public-private partnerships, collaborative projects, etc.).
               Scope of Work (cont.)
Regional Scenario Model Development
• Provide input into the design of a model to run regional
  scenarios that demonstrate the results of multiple
  combinations of energy efficiency, bioenergy, renewable
  electricity and advanced coal/CCS themes
MGA Energy Security & Climate Stewardship Roadmap
• Develop a broader roadmap that outlines modeling results,
  recommended policies and initiatives, implementation results
  to date and next steps (roadmap will be a primary
  documentary centerpiece for next Summit in Sept. 2009)
             Platform Elements
6 Cooperative Regional Initiatives

  •   CO2 management infrastructure partnership
  •   Transmission adequacy initiative
  •   Low-carbon energy transmission infrastructure
  •   Bioproduct procurement program
  •   Renewable fuels corridors and common signage
  •   Advanced bioenergy permitting collaborative
           Regional Challenges and
• Challenges:
   – Most coal-dependent power sector
   – Energy intensive manufacturing and agriculture industries
• Opportunities:
   – World class renewables potential
   – Vast reserves of coal with geologic formations to store CO2
     and agriculture land, forests and wetlands to sequester it
   – Industrial base that can be retooled to design,
     manufacture and service next generation energy
     technologies at scale
            Keys to Success
• Leadership from governors
• Midwestern practicality
   - Advanced coal and renewables
   - Strong energy efficiency component
• Regional goals
• Stakeholder input
• Potential for new jobs
         Jesse Heier