U.S. States & Regions

States and regions across the country are adopting climate policies, including the development of regional greenhouse gas reduction markets, the creation of state and local climate action and adaptation plans, and increasing renewable energy generation. Read More
 

Solutions Forum Webinar: Financing Climate Resilience – What Are Our Options?

Promoted in Energy Efficiency section: 
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July 21, 2016Noon – 1:30 p.m. ETRegister Here 

Solutions Forum: Financing Climate Resilience – What Are Our Options?

Climate change is expected to increase risks to businesses, infrastructure, assets, and economies. Extreme weather events and disasters are already damaging assets, disrupting supply chains, reducing productivity and revenues, and destroying livelihoods.  Projected climate impacts will also likely hit the creditworthiness of companies, posing risks to financial institutions and may affect companies' credit ratings.  At the same time, the renewal of ageing infrastructure provides an opportunity for governments and companies to integrate climate resilience into the refurbishment of their assets.  This webinar will explore some of the options available for financing resilience infrastructure and will feature an interactive discussion between experts in the field concerning available opportunities and potential challenges.


Speakers

Bruce Ciallella
Managing Director for HUD Programs (Office of Recovery), New Jersey Energy Resilience Bank

Shalini Vajjhala
Founder & CEO, re:focus partners

Katy Maher
Science Fellow and Resilience Project Coordinator, Center for Climate and Energy Solutions

Fatima Maria Ahmad
Solutions Fellow, C2ES.

Register Here

Speaker Bios:

Bruce Ciallella is currently the Managing Director for HUD Programs (Office of Recovery). In this role, he oversees the Hurricane Sandy recovery effort for the New Jersey Economic Development Authority (EDA). His role includes managing the Stronger NJ Business Grant Program, the Stronger NJ Business Loan Program, the Neighborhood Community Revitalization Program, and the Energy Resilience Bank. Prior to joining the EDA, Mr. Ciallella served as Deputy Attorney General for the state of New Jersey representing the EDA and New Jersey Housing and Mortgage Finance Agency in various legal matters, including but not limited to the creation of various Hurricane Sandy programs. Furthermore, before joining the state, Mr. Ciallella was a market maker on the floor of the NASDAQ OMX PHLX trading in the oil service, homebuilder, and gold and silver sectors.

Shalini Vajjhala is founder & CEO of re:focus partners, a design firm dedicated to developing integrated resilient infrastructure solutions and innovative public-private partnerships, including the RE.invest Initiative and the RE.bound Program. Prior to starting re:focus, Ms. Vajjhala served as Special Representative in the Office of Administrator Lisa Jackson at the U.S. EPA, where she led the U.S.-Brazil Joint Initiative on Urban Sustainability, EPA Deputy Assistant Administrator in the Office of International & Tribal Affairs, and Deputy Associate Director for Energy & Climate at the White House Council on Environmental Quality. She joined the Obama administration from Resources for the Future, where she was awarded a patent for her work on the Adaptation Atlas. Ms. Vajjhala received her Ph.D. in engineering & public policy and Bachelor of Architecture from Carnegie Mellon University.

Katy Maher is a Science Fellow and Resilience Project Coordinator at the Center for Climate and Energy Solutions (C2ES). She contributes to C2ES’s efforts to assess and communicate the current state of knowledge regarding climate change and its impacts, and to promote actions that strengthen climate resilience. Ms. Maher has more than eight years of experience supporting climate change impacts and adaptation projects. Prior to joining C2ES, she worked for ICF International assisting a range of clients – including the U.S. Environmental Protection Agency, Federal Highway Administration, U.S. Agency for International Development, and state and local governments – in assessing climate change risks and developing adaptation solutions. Ms. Maher also served as Chapter Science Assistant for the Social, Economic and Ethical Concepts and Methods chapter of Working Group III’s contribution to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change.

Fatima Maria Ahmad is a Solutions Fellow at the Center for Climate and Energy Solutions (C2ES) where she co-leads the National Enhanced Oil Recovery Initiative with the Great Plains Institute. Ms. Ahmad focuses on financing opportunities and policy support for emerging energy technologies, including carbon capture, use, and storage (CCUS). In a volunteer capacity, Ms. Ahmad is the Co-Chair of the American Bar Association Section of International Law International Environmental Law Committee and is the Women’s Council on Energy & the Environment Vice-Chair for Membership. 

Making the Clean Power Plan work with city energy goals

Cities often lead the way on greenhouse gas reductions, even though they rarely control the operation of the power plants that supply their energy. So how can city initiatives work together with the federal Clean Power Plan to reduce carbon emissions from power plants?

One option is the Clean Energy Incentive Program (CEIP). The U.S. Environmental Protection Agency (EPA) included this early-action program as part of the Clean Power Plan and recently released program design details.

The program is voluntary. If a state chooses to participate, then certain renewable and energy efficiency projects can receive early action credits, including a federal match from EPA. These credits can be used for complying with the Clean Power Plan, so they provide additional financial incentives for clean energy projects.

While we can’t know the full value of the CEIP without knowing how many states participate and how power plants in those states comply with the Clean Power Plan, C2ES estimates the CEIP could drive up to $7.4 billion of private spending on clean energy projects across the country.

A key aspect of the CEIP is its support of project development in low-income communities. Solar and energy efficiency projects in these communities receive double credit, and a special reserve pool is created to make sure these projects can compete with large renewables for credits. This type of project development can support four key goals of city leaders:

1.     Taking action to fight climate change;

2.     Reducing energy bills for low-income residents;

3.     Bringing jobs and investment to the community; and

4.     Delivering co-benefits of renewable energy like cleaner air and water.

City leaders have the know-how to channel CEIP credits to their communities, but they will need to partner with their states and businesses to succeed.

Once states choose to participate, city leaders can help articulate the benefits of the CEIP. Cities can also provide data and support to project developers to streamline CEIP projects, especially low-income community projects that often face more hurdles. For example, they could help businesses locate communities that would host projects, work with utilities to identify potential projects, and build public-private partnerships to finance renewable energy.

How does it work?

Step 1: EPA creates a matching pool for each state. The amount of CEIP match available is limited, and EPA will divide the total pool among the states before the program gets started. If a state does not use its full share of the match, those credits will be retired. In other words, the CEIP is use it or lose it. Half of each state’s pool is reserved for low-income community projects and the other half for renewable projects like wind, solar, geothermal, or hydroelectricity.

Step 2: Interested states include the CEIP as part of their implementation approach. States must submit a plan to EPA that details how they will implement the Clean Power Plan. States that opt-in to the CEIP would have to declare that as part of their plan, and then they could receive the EPA match. If states opt out, then clean energy projects within their borders would not be eligible.

Step 3: New clean energy projects are developed in participating states. CEIP credits go only to new projects – renewable projects that start generating electricity on or after Jan. 1, 2020 or low-income energy-efficiency projects that start delivering energy savings on or after Sept. 6, 2016.

Step 4: New clean energy projects benefit the community. CEIP credits are awarded for electricity generated (renewables) or saved (energy efficiency) in 2020 and 2021. Starting in 2022, these projects are eligible for other financing opportunities under the Clean Power Plan.

Step 5: CEIP projects receive tradeable credits. States will verify how much clean energy a project is producing, then distribute the appropriate amount of CEIP credits (half from the state’s pool and half from EPA) to eligible projects. The project developers that receive the credits can sell them to power plants that need them to comply with the Clean Power Plan. CEIP projects don’t need the credits themselves because only fossil fuel-fired power plants are covered by the regulation. The value of CEIP credits will be determined by how power plants reduce their emissions.

The dates in the CEIP design details may change, depending upon the outcome of the legal challenge against the Clean Power Plan.

Conclusion

The CEIP will be open for public comment this summer. Once finalized, it will help promote new clean energy development in communities across the country. Its focus on low-income communities aligns it with other city priorities in addition to fighting climate change. The short timeframe of the program will make public-private collaboration a key to success in attracting CEIP projects.

C2ES, through our Alliance for a Sustainable Future with The U.S. Conference of Mayors, can be a valuable resource on climate policies like the CEIP. By communicating technical information in a meaningful way and facilitating the conversations between cities and businesses, we can advance clean and efficiency energy.

Details of the Clean Energy Incentive Program

ceip-details-cover

Details of the Clean Energy Incentive Program

June 2016

Download the Fact Sheet (PDF)

Under its final Clean Power Plan (CPP), the U.S. Environmental Protection Agency (EPA) established the Clean Energy Incentive Program (CEIP) to encourage early action in meeting CPP objectives. The CEIP is a voluntary program for states to incentivize renewable and energy efficiency projects by giving them assets that will be tradable in Clean Power Plan markets. On June 16, 2016, EPA proposed design details for the CEIP.

This fact sheet has been developed by C2ES in support of the Alliance for a Sustainable Future, in partnership with The United States Conference of Mayors. For more information about the Alliance, see: http://www.allianceforasustainablefuture.com

Fact sheet outlining details of EPA's Clean Energy Incentive Program and compliance options for states.
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C2ES and The US Conference of Mayors team up on climate

Separately, cities and businesses have been showing tremendous leadership in reducing the emissions responsible for climate change and building resilience to climate impacts.

Imagine what they can do together.

By sharing research and analysis, building crucial connections, and fostering innovative partnerships, cities and businesses can accelerate progress toward our climate goals – progress we sorely need.

That’s why the Center for Climate and Energy Solutions (C2ES) and The U.S. Conference of Mayors are teaming up to create the new Alliance for a Sustainable Future. This alliance will help mayors and business leaders develop concrete approaches to reduce carbon emissions, speed deployment of new technology, and implement sustainable development strategies.

City and business action and input are vital as states consider how they will implement the Clean Power Plan, and as the U.S. works toward its Paris Agreement goal to reduce emissions 26-28 percent by 2025.

Through the Alliance, we plan to:

  • Improve city and business engagement with state climate planning to add to our overall emissions-cutting efforts.
  • Provide a forum for problem solving among cities, businesses, and states, and build platforms for more public-private partnerships on climate and sustainability.
  • Identify best practices for coordinated action by cities, businesses, and states to reduce greenhouse gas emissions and deal with the consequences of climate impacts.

About the alliance

C2ES has long been a voice for pragmatic policy and a catalyst for constructive business engagement on climate change. Our Business Environmental Leadership Council, created in 1998, brings together industry-leading, mostly Fortune 500 companies across a range of sectors that are committed to climate action and support mandatory climate policy. C2ES has also been working closely with states and cities, including on implementation options for the Clean Power Plan.

The U.S. Conference of Mayors has long been a leader on climate change. In 2005, more than 1,000 mayors signed the Mayors’ Climate Protection Agreement, a landmark pledge to take local action to reduce carbon emissions. That pledge was updated in 2014 to also focus on making cities more resilient to climate impacts. The U.S. Conference of Mayors has encouraged federal and state cooperation with mayors to accelerate clean energy and energy efficiency.

Cities and companies in action

As the Alliance’s co-chair, Santa Fe Mayor Javier Gonzales, said: “Cities are our nation’s economic powerhouses, making them a key proving ground for policies to increase energy efficiency, deploy clean energy, and foster clean transportation.”

Cities are taking the lead in advancing more energy-efficient buildings; tracking electricity and water use, setting emissions reduction targets, and promoting electric vehicles. These programs make for stronger and more resilient communities and economies.

A number of cities, including Los Angeles, are even setting a goal of being powered by 100 percent renewable energy.

Companies are investing in clean energy projects, reducing emissions throughout the supply chain, establishing internal carbon pricing, and helping customers reduce their carbon footprint. More than 150 companies have signed the American Business Act on Climate Pledge, committing to steps such as saving energy and reducing water usage.

These steps, over and above regulatory requirements, could produce greater emission reductions than we can foresee.

Taking the next step

Climate change is global, but the impacts are local, and our communities are already experiencing them, including more frequent and intense heat waves, heavy downpours, and rising sea level. How we reduce climate-altering emissions will have implications for economic development, public health, and community wellbeing, especially for our most vulnerable populations.

Cities and businesses both have a strong interest in cost-effective approaches. Local-level and business innovation is critical to the success of the Clean Power Plan and other state and federal policies to shrink our carbon footprint. And these successes will point the way to a national strategy to help us transition to a clean energy future.

Separately, cities and businesses have already been demonstrating climate leadership. Together, we can put our foot on the accelerator and reach our goals.

Alliance for a Sustainable Future Announced

Press Release
June 21, 2016

Contacts:
Laura Rehrmann 703-516-0621 rehrmannl@c2es.org
Elena Temple Webb 202-286-1100 etemple@usmayors.org
 

Alliance for a Sustainable Future Announced

The U.S. Conference of Mayors and C2ES will bring together city and business leaders to focus on reducing power sector emissions and spurring sustainable development

WASHINGTON -- The U.S. Conference of Mayors (USCM) and the Center for Climate and Energy Solutions (C2ES) today announced a new alliance to spur public-private cooperation on climate action and sustainable development in cities.

The USCM-C2ES Alliance for a Sustainable Future will create a framework for mayors and business leaders to develop concrete approaches to reduce carbon emissions, speed deployment of new technology, and implement sustainable development strategies as a part of implementing the Clean Power Plan and responding to the growing impacts of climate change.

City and business leaders will identify barriers to action and share research and analysis on climate and sustainable development solutions. By building crucial links between cities and companies, the alliance aims to spur innovative partnerships and increase participation in state and national climate efforts.

“Since 2005, USCM has been leaders on climate change and reducing greenhouse gas emissions. Mayors and businesses must work together to develop sustainable solutions,” said Baltimore Mayor Stephanie Rawlings-Blake, The U.S. Conference of Mayors President. “The Clean Power Plan is the cornerstone of the nation’s strategy to achieve these reductions, which are becoming more and more important as the effects of climate change are upon us.”

“This alliance brings together mayoral political leadership and the pragmatic policy expertise of C2ES to advance climate change action and sustainable development, including by working with states to implement the Clean Power Plan” said Tom Cochran, CEO and Executive Director of The U.S. Conference of Mayors. “It is time for more concerted action and cooperation to spur ingenuity and expedite solutions.”

“Separately, cities and businesses have already been demonstrating climate leadership,” said C2ES President Bob Perciasepe. “Together, we can put our foot on the accelerator and reach our emissions-cutting goals.”

Santa Fe Mayor Javier Gonzales has been appointed by Mayor Rawlings-Blake to lead the effort for The U.S. Conference of Mayors, which will be approaching business partners with C2ES following the mayors' 84th Annual Meeting, June 24-27 in Indianapolis.

“Cities are our nation’s economic powerhouses, making them a key proving ground for policies to increase energy efficiency, deploy clean energy, and foster clean transportation,” said Mayor Gonzales. “Cities and companies have an opportunity to develop best practices to reduce greenhouse gas emissions and deal with the consequences of climate impacts.”

About The U.S. Conference of Mayors: The U.S. Conference of Mayors is the official nonpartisan organization of cities with populations of 30,000 or more. There are nearly 1,400 such cities in the country today, and each city is represented in the Conference by its chief elected official, the mayor. Learn more at www.usmayors.org.

About the Center for Climate and Energy Solutions: C2ES is an independent, nonprofit, nonpartisan organization that brings policymakers, business, and other diverse interests together to forge practical solutions to the pressing challenge of global climate change. Learn more at www.c2es.org.

 

 

Working together for more efficient buildings

Cities and states on the West Coast are teaming up to tackle one of the biggest sources of urban emissions: energy use in buildings.

Three governors, six mayors, and the environment minister of British Columbia adopted the Pacific North America Climate Leadership Agreement this month at the Clean Energy Ministerial in San Francisco. The leaders of British Columbia, California, Los Angeles, Oakland, Oregon, Portland, San Francisco, Seattle, Vancouver, and Washington state agreed to work together to address the energy use and greenhouse gas emissions from buildings.

Energy use in buildings is one of the largest sources of emissions in most cities. Buildings account for 52 percent of emissions in San Francisco, and 33 percent in Seattle. Even in smaller cities, the building sector remains a significant source of emissions. If cities can cut energy use in buildings, it can help them deliver on their ambitious climate mitigation commitments.

Since cities are already filled with buildings, improvements must be made to those that are already in use, rather than waiting for newer, more efficient buildings to be constructed.

A place to start is with benchmarking and disclosure policies, which are in place in 15 cities. Cities require building managers to record and report their energy use with the help of EPA tools. The resulting database can help identify opportunities for reducing energy use. And city officials can use the information to guide policy and create long-term strategies to reduce energy use and emissions.

To ensure that buildings achieve reductions in energy use, cities are complementing benchmarking and disclosure policies with additional actions, including: retro-commissioning, a process that assesses buildings to uncover low-cost operational improvements; supporting buildings through retrofit processes; and ensuring that buildings undergoing major renovations are brought up to current code. 

Examples of these policies can be found throughout the West Coast and the U.S. at large. Seattle recently required commercial buildings 50,000 square feet or larger to undertake retro-commissioning processes every five years. Los Angeles is supporting property owners and managers to execute building performance upgrades to achieve 20 percent reductions in energy usage. And Washington, D.C., like many cities, requires major upgrades to existing buildings to meet current, more energy-efficient building codes.

With a comprehensive suite of policies aimed at commercial building efficiency, cities can take action to address one of their largest sources of emissions. We are heartened to see that the Western states and cities have committed to work together on this challenge, and look forward to seeing the local progress that might be accelerated with supportive state policies. By working together, cities and states can help shape policy, investment, and behavior change strategies that can become models for broader action.

Policy Considerations for Emerging Carbon Programs

Policy Considerations for Emerging Carbon Programs

June 2016

Download the Fact Sheet (PDF)

With climate action gaining momentum around the country, policymakers at the city, state, and federal level are all considering policy tools they can use to achieve their goals. Many market-based options exist that can deliver differing co-ben efits. Discussions and collaboration with other jurisdictions and with affected businesses can also improve the policy outcome.

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City-level Climate Leadership in Boulder: The Climate Action Plan Tax

City-level Climate Leadership in Boulder: The Climate Action Plan Tax

June 2016

Download the Fact Sheet (PDF)

Cities across the United States are using a range of policy options to achieve their climate mitigation goals. One example is Boulder, Colorado, which has a long history of taking climate action, and is using a market-based approach to both reduce emissions and fund mitigation programs. In 2006, the city passed Initiative 202, the Climate Action Plan (CAP) Tax Initiative, which became the nation’s first directly voter-approved carbon tax. The tax charges consumers based on their fossil fuel-based electricity consumption, and the revenue is used to fund energy efficiency and renewable energy programs.

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California-Quebec auction hits a record low (and that's probably a good thing)

What if you held a sale and customers bought hardly any of your product? You might conclude that your product wasn’t very popular. If your product happened to be carbon allowances, essentially permission slips to emit carbon pollution, that lack of popularity sounds like a good thing for the climate.

This is essentially what happened last week when California and Quebec, who have joined their carbon markets, announced the results of their most recent auction of allowances. Companies who must buy allowances decided they didn’t need the full amount being offered, presumably because their emissions are declining.

California and Québec began their carbon markets in 2013, and the partners have held joint auctions of allowances every three months since November 2014. Each jurisdiction sets a limit on nearly all fossil fuel combustion at an amount that declines each year (the cap). Businesses responsible for that fossil fuel combustion have to buy allowances at auction to cover their emissions.

Historically, businesses have bought more than 90 percent of the allowances offered. But at the most recent auction, only about 10 percent of the allowances were sold.

This is great news. It means that carbon emissions are going down, and at a faster rate than the policy requires. If emissions were going up, prices at auction would be high. If emissions were going down at the same rate as the cap, then prices might be low but the auction would still sell out.

Market forces, like declining costs of renewable power, are part of the reason why emissions are declining. Businesses can use cost-effective alternatives to fossil fuels in their operations.

Also factoring into the results are the numerous other policies California and Québec have in place to drive down emissions, including ones aimed at increasing energy efficiency. That means businesses use less energy overall.

Is there any reason this might be considered bad news? Well, if you were counting on the money from the sale, it’s a problem.

California has anticipated generating billions in revenue through 2020 from the allowance auctions. But with few allowances sold, that state revenue source drops dramatically. California’s auction revenue is directed to various clean energy programs across the state, which means those programs could be in jeopardy if auction sales remain low.

So, is this an example of cap-and-trade working or not working? I would argue this is how cap-and-trade is supposed to work. The government sets a cap based upon its climate goals, the cap creates a price in the market, and companies incorporate the carbon price into their business decisions. If emissions are low (more accurately, if they are lower than the cap), then businesses don’t buy carbon allowances, pure and simple. Both California and Québec agreed upon rules for handling unsold allowances before their programs started, so businesses know what to expect.

A larger and more difficult question is whether this is an example of carbon pricing working. In both jurisdictions, the cap-and-trade program is only one of many policies aimed at reducing emissions. It’s unclear at the moment to what extent the carbon price is driving down emissions (and allowance demand) versus other policies. A sophisticated statistical analysis is required to answer that question, and as the cap-and-trade program continues there will be observations to enable just such an analysis. 

There is often a heated debate around implementing new policies, and it is not unusual to hear predictions that regulating carbon emissions will cause economic doom. But time and again, experience has shown that businesses adapt quickly to new conditions and keep doing what they’re good at – giving us the products and services we want to buy. That they’re doing this while keeping their carbon emissions below a set level is something to celebrate.

Cities need connection for climate action

In Philadelphia, officials collect energy use data from schools, hospitals, labs and office buildings, using the information to identify energy and cost savings.

Cities can be the leaders and heroes in our climate crisis if we can build the right relationships to empower them.

Whether it’s because their governments can be more responsive, or because they are becoming so interconnected, cities are playing a prominent role on the international stage in galvanizing climate action.

Starting with the groundbreaking Mayors Climate Protection Agreement in 2005, city initiatives like the Compact of Mayors and the Carbon Neutral Cities Alliance are evolving to connect cities with each other to exchange knowledge and achieve economies of scale for new technologies. This month, mayors around the world announced plans to push for investments in climate-friendly urban infrastructure, particularly in developing nations.

But the transformation we need requires more than connecting cities to one another. Cities also need to be connected to other levels of government and to the business community.

Barriers to Action

Two new reports from C40 Cities (Power Behind Paris) (Unlocking Climate Action In Megacities) highlight obstacles stopping cities from enacting transformative climate solutions. First, cities operate within a larger system of governments that affect their ability to act. Second, they rely on businesses to implement solutions to achieve a low-carbon, resilient local economy.

You could look at these as barriers or simple truths, but either way, the fact that cities rely on external entities is important to keep in mind. To combat global climate change, we cannot expect any institution to do it alone.

The C40 reports point to the need for better vertical integration with governments, and stronger collaborative relationships and practices with the private sector.

Examples of Leadership                                                               

Putting this into practice is difficult but achievable.

For example, to achieve its goal to reduce the city’s carbon footprint, Philadelphia had to address energy use in buildings, the city’s largest source of emissions. To establish its energy benchmarking policy, which collects and publicizes energy use for non-residential buildings over 50,000 square feet, the city had to work with local school officials, universities, and commercial real estate companies. The city collects energy use data from schools, hospitals, labs, office buildings and more that can be used to find energy and cost savings.

The city of Phoenix has set a goal to get 15 percent of its electricity from renewable resources by 2025. To reach that goal, it has partnered with the private sector, investors, and the state to finance and develop solar power installations on public and private lands, including the airport, a landfill, and a water treatment plant.

Steps like these can help states implement the Clean Power Plan, and help the U.S. close the gap to reach its emissions-cutting goals under the Paris Agreement. Despite this, cities have been largely outside-looking-in when it comes to serious conversations on designing and implementing state, federal and international climate policy.

An Integrated Approach

How much faster could we tackle our climate and energy challenges if we took a more integrated approach? The potential is great; for every Philadelphia or Phoenix there are a dozen more cities that aspire to achieve similar success.

For these reasons, C2ES is promoting collaborative approaches that result in integrated 'ecosystems' of policies and programs. Our Solutions Forum fosters new relationships among cities, businesses, and states on key issues. We are also helping cities work with local businesses to establish climate resilience plans that leverage both public and private resources.

City-city initiatives are critical to galvanize support for and increase understanding of transformative climate and energy solutions. But putting these solutions into practice will take on-the-ground collaboration with other levels of government and businesses.

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