Wci Stakeholder Update For January 12 2012

www.westernclimateini-a-ve.org 1

Western Climate Initiative

San Francisco, CA January 12, 2012

WCI Emissions Trading Program Update


WCI Emissions Trading Program

•  Comprehensive strategy to reduce greenhouse gas emissions and spur a clean-‐energy economy

•  Benefits include: •  Reducing costly impacts climate change will have on water resources, natural ecosystems, air quality, & environment-‐dependent industries like agriculture and tourism

•  Providing incen@ves for clean-‐energy technologies •  Crea@ng green jobs •  Increasing energy security •  Protec@ng public health


Recent Accomplishments

•  Detailed Program Design released July 2010

•  California rules for C&T and offsets approved December 2011

•  Québec rule for C&T approved December 2011

•  Offset Protocol Review and Recommenda@on Process released December 2011

•  Further harmoniza@on of Canadian emission repor@ng requirements released December 2011


Recent Accomplishments

•  WCI, Inc. incorporated November 2011 •  WCI, Inc. provides administra@ve and technical services to support the implementa@on of state and provincial greenhouse gas emissions trading programs

•  WCI con@nues to exist as a collabora@on of governments interested in implemen@ng market-‐based mechanisms for reducing economy-‐wide GHG emissions

•  These organiza@ons con@nue to include jurisdic@ons ac@vely pursuing a C&T program. This streamlines the process of developing the program while allowing other jurisdic@ons to join when ready.


Regional Administration

The crea(on of WCI, Inc. will allow par(cipa(ng jurisdic(ons to implement their programs efficiently and consistently to create a regional carbon market

•  Services will include: •  Management of a compliance instrument tracking system

•  Administra@on of allowance auc@ons •  Coordina@on of market monitoring and oversight

•  Next steps •  Hire execu@ve director and staff


Market Development

Proper market design, infrastructure, and oversight reduce compliance cost and ensure fair treatment of market par(cipants

•  Next steps •  Execute contracts for support services for auc@on and reserve sales and market monitoring

•  WCI, Inc. to release RFP for compliance instrument tracking system service (CITSS) opera@on

•  Allow covered en@@es and others to register with CITSS


Offsets

A rigorous offset system is key to producing high-‐quality offsets that can be exchanged across Partner jurisdic(ons

•  Next steps •  Finalize process for issuing offsets •  Develop offset protocols to meet WCI program criteria


Emissions Reporting

A rigorous repor(ng system and high-‐quality emissions data are important for achieving environmental and economic objec(ves

•  Next steps •  Harmoniza@on with final EPA oil and gas methods, while maintaining C&T quality data

•  Maintain harmoniza@on among Partner repor@ng requirements


Linking

The full value of the regional program will be realized as Partner jurisdic(ons complete bilateral linking, recognizing each others’ allowances and offsets for compliance purposes

•  Next steps •  Review jurisdic@ons’ programs to assess consistency

•  Complete and update regula@ons as necessary


Outreach

•  Provide stakeholders with periodic updates •  Con@nue working closely with federal governments and other climate ini@a@ves to ensure coordina@on and promote na@onal and interna@onal ac@on

Begin two-year compliance period

Final Offset System Process Recommenda@ons

2012 Implementation Timeline

December

January

1st Auc@on

2nd Auc@on

Contract w/ auc@oneer, financial services, and market monitor

Release RFP for tracking system opera@on

Tracking system user registra@on

Complete linking between CA and QC

Staff WCI, Inc.

Documents

Wci Stakeholder Update For January 12 2012