Late 2006 States News Archives

Archives: Latest News | [1] Early 2006 [2] | [1] 2005 | [3] 2004 | [4] 2003 [5]

Boulder Passes Tax on Greenhouse Gas Emissions from Electricity Generation

On November 8, 2006, Boulder, CO voters passed the first energy tax in the nation designed to fund efforts to fight global warming. This Climate Action Plan Tax on greenhouse gas emissions-generating electricity is collected by the local electric utility based on the amount of electricity used by customers. The tax only applies to electricity generated from the combustion of carbon-emitting fossil fuels such as coal and natural gas; customers signed up through a voluntary program to receive some or all of their electricity from wind power will be exempt from the tax for the carbon-free share of their electricity use. On average, the tax will add about $1.33 per month to household electricity bills, and $3.80 per month for businesses. The collected revenue, estimated to be about $1 million a year through 2012, will be used by Boulder’s Office of Environmental Affairs to help the city meet the goals set under its 2006 Climate Action Plan, which include investment in renewable energy sources, energy efficiency for buildings, and transportation initiatives. The city’s plan aims to reduce greenhouse gas emissions seven percent below 1990 levels by 2012.

Press Release [6]

Washington Voters Adopt Renewable Portfolio Standard for Major Utilities

On November 7, 2006, Washington state voters approved ballot initiative 937, setting renewable energy standards for utility companies in the state. The measure requires all utilities serving 25,000 people or more to produce 15% of their energy using renewable sources by 2020. Such sources include wind, solar, and tidal power as well as landfill-methane capture. With the initiative’s approval, Washington becomes the 23^rd state to implement a renewable portfolio standard. Washington is the second state to adopt an RPS by ballot initiative, following Colorado's passage of an RPS in 2004.

Initiative Measure No. 937 [7]
Map of States with Renewable Portfolio Standards [8]

California Explores Greenhouse Trading Links with New York, RGGI States

On Monday, October 16, California Governor Arnold Schwarzenegger and New York Governor George Pataki announced plans to link emissions trading between the carbon markets being developed for California and the states participating in the Northeastern Regional Greenhouse Gas Initiative (RGGI) which currently include New York, New Jersey, New Hampshire, Connecticut, Delaware, Maine, and Vermont (Maryland will join at the end of June 2007). Governor Schwarzenegger’s announcement included an executive order that will name California Secretary for Environmental Protection Linda Adams as coordinator of state climate change policy, directing her to work with the California Air Resources Board to develop a plan that will link emission credit markets in California with those being developed by RGGI. By combining markets, California and the RGGI states hope to achieve their emissions reductions targets in the most efficient manner possible.

Press Release
[9]Executive Order S-17-06 [10]

Illinois Governor Establishes State GHG Emissions Target, Creates Climate Change Advisory Group

On October 5, 2006, Illinois Governor Rod Blagojevich signed an executive order launching a new global warming initiative and mandating a 6 percent cut in the state government’s greenhouse gas emissions by 2010. The Governor also announced that Illinois will become the second state (after New Mexico) to join the Chicago Climate Exchange, a voluntary emissions trading market, and that the state will buy credits on the exchange should it fail to reach its emissions goals. The executive order directed the formation of a Climate Change Advisory Group to consider strategies and make recommendations on how the state can best reduce its greenhouse gas emissions. The Advisory Group, which includes scientists and representatives from business, industry, and the environmental community, must present its findings and recommendations to the Governor by June 30, 2007.

Press Release [11]
Executive Order 11 (2006) [12]
Illinois EPA Director Doug Scott Interviewed on Environment and Energy TV's OnPoint [13]
Map of States with Climate Change Commissions and Advisory Groups [14]

Schwarzenegger Signs Historic Global Warming Legislation, Electricity Emissions Standard Bill, Renewable Energy Bill

As September 2006 drew to a close Governor Arnold Schwarzenegger signed three pieces of legislation that will reduce California’s greenhouse gas emissions. Governor Schwarzenegger signed the most comprehensive of the new laws, the landmark Global Warming Solutions Act (AB 32) [15] at an official ceremony on September 27. The law caps the state’s greenhouse gas emissions at 1990 levels by 2020. This emissions target is approximately equal to a 25% reduction from current levels and is the first statewide program in the country to mandate an economy-wide emissions cap that includes enforceable penalties. The bill requires the State Air Resources Board to establish a program for statewide greenhouse gas emissions reporting and to monitor and enforce compliance with this program. It also authorizes the state board to adopt market-based compliance mechanisms including emissions cap-and-trade, and allows a one-year extension of the targets under extraordinary circumstances.

Two days later, on September 29, Governor Schwarzenegger signed SB 1368, authored by State Senator Don Perata. The new law directs the California Energy Commission to set a greenhouse gas performance standard for electricity procured by local publicly owned utilities, whether it is generated within state borders or imported from plants in other states, and will apply to all new long-term electricity contracts. The standard – to be adopted by June 30, 2007 – will discourage the purchasing of electricity produced from high-emissions sources, whether instate or out-of-state. It will push utilities to rely more on clean sources, including coal with carbon capture and sequestration, and renewables. This will help California to achieve its new economy-wide emissions targets.

Earlier in the same week, on September 26 Governor Schwarzenegger signed SB 107, which requires California’s three major utilities – Pacific Gas & Electric, Southern Edison, and San Diego Gas & Electric – to produce at least 20 percent of their electricity using renewable sources by 2010.

Press Release [16]
AB 32 [17]
SB 1368 [18] (pdf)
SB 107 [19] (pdf)
List of Emissions Reduction Targets Worldwide [20]
Map of States with GHG Emissions Targets [21]

Arizona Governor Establishes Statewide GHG Emissions Reduction Target

On September 8, 2006, Arizona Governor Janet Napolitano issued an executive order to implement recommendations included in the Climate Change Advisory Group’s Climate Action Plan. The Governor established a statewide goal to reduce Arizona’s GHG emissions to 2000 levels by 2020, and 50% below this level by 2040. The executive order directs the Arizona Department of Environmental Quality to develop a GHG emissions reporting mechanism, to establish a GHG registry with other Western states, and to coordinate with the Arizona Department of Transportation to adopt and implement California’s vehicle GHG standards. The Executive Order also creates a Climate Change Executive Committee to develop a strategy to implement the other recommendations contained in the Climate Action Plan.

Press Release [22]
Climate Change Action Plan [23] (pdf)
List of Emissions Reduction Targets Worldwide [20]
Map of States with GHG Emissions Targets [21]
Map of States with Climate Action Plans [24]

Schwarzenegger Signs Million Solar Roofs Plan

On August 21, 2006, California Governor Arnold Schwarzenegger signed a bill expanding the state’s $3.2 billion solar subsidy program to include incentives to customers of municipally owned utilities. The bill provides for the installation of 1 million rooftop solar panels, which would generate approximately 3,000 megawatts of solar electric power and reduce greenhouse emissions by 3 million tons per year. The new legislation requires homebuilders to offer rooftop solar panels to prospective home buyers beginning in 2011, and increases the cap on the number of customers who can sell excess energy back to power companies from 0.5 to 2.5 percent.

Press Release [25] 

Regional Greenhouse Gas Initiative Releases Final Model Rule

On August 15, 2006, the seven Northeastern and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative (RGGI) released the final model rule for the program. RGGI is a mandatory cap-and-trade program designed to reduce CO₂ emissions from power plants. The model rule provides a set of regulations for the structure and function of RGGI. Each state that intends to participate in RGGI must adopt this rule through legislation or regulation. The final model rule incorporates public comments received on earlier drafts from formal stakeholders and interested parties. The participating states also agreed to amend their December 2005 Memorandum of Understanding, simplifying the safety valve and offset provisions of the program. Currently, Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont have signed the memorandum of understanding, and Maryland has committed to joining the initiative by 2007.

Press Release [26]
RGGI Q & A [27]
More Information on RGGI [28]
RGGI Website [29]
List of Emissions Reduction Targets Worldwide [20]
Map of Regional Initiatives [30]


Indiana Creates Energy Council, Mandates Efficiency and Renewables

On August 11, 2006, Indiana Governor Mitch Daniels signed an executive order creating the Interagency Council on Energy. The council will provide energy policy advice to the governor and General Assembly, oversee the implementation of a plan to improve energy efficiency, and promote in-state production of clean energy. In particular, the plan encourages use of clean coal and biomass to produce electricity and transportation fuels. Governor Daniels also signed Executive Order 06-14 mandating that at least 10 percent of electricity used in state government buildings come from domestically produced, renewable energy by 2010, and increase to 25% by 2025. In addition, state fleet vehicle replacements must be able to use alternative fuels.

Press Release [31]
Executive Order 06-14 [32]
"Hoosier Homegrown" Energy Plan [33]


California Governor and UK Prime Minister Sign Climate Change Agreement

On July 31, 2006, California Governor Schwarzenegger and British Prime Minister Tony Blair signed an agreement to act collaboratively to address climate change. The agreement commits both California and the United Kingdom to: enhance linkages between their respective scientific communities to assess the impacts of climate change at the regional level; share information on the economic impacts of climate change and of potential mitigation strategies and adaptation measures; collaborate on technology research, especially for the energy sector; evaluate and implement market-based mechanisms and explore the potential for linkages between such mechanisms in California and the UK. Blair and Schwarzenegger announced the agreement at a meeting with prominent Californian and European business leaders on climate issues.

Press Release [34]
Eileen Claussen's Interview on NPR's Here & Now [35]


Connecticut Governor Signs Clean Cars Bill into Law

On July 25, 2006, Connecticut Governor Jodi Rell signed “An Act Concerning Clean Cars” into law. This legislation, which goes into effect in October 2007, requires automobile manufacturers to affix a label to vehicles sold in the state detailing the vehicle’s greenhouse gas (GHG) emissions. The law bars both the sale and the lease of 2009 or later models without the required GHG label. The labeling program will be funded through a $5 fee on new car registrations. The new law also requires Connecticut’s Department of Environmental Protection and Department of Motor Vehicles to create an education program to disseminate information about global warming and the effect of vehicle choice on GHG emissions.

Press Release [36]


Rhode Island Approves Bills to Encourage Efficiency and Renewables

On June 29, 2006, Rhode Island Governor Donald Carcieri signed a comprehensive energy bill designed to encourage the use of energy efficiency, renewable and distributed energy systems (small power systems owned by the customer and connected to the grid). The legislation requires the state’s Public Utilities Commission (PUC) to set new standards for procuring energy from diverse sources, including renewable energy systems and distributed energy systems. By 2008, each utility in the state has to submit plans – to be updated every three years - for procuring these energy resources, including goals and target percentages for each resource. The energy bill also establishes new criteria to facilitate the siting of wind power facilities, creates a $7 million fund to support investments in renewable energy, and increases the rebates to consumers who purchase energy efficiency equipment. To help establish long-term energy plans, the legislation creates the Office of Energy Resources. Governor Carcieri also signed S 2844 on June 23rd, requiring the PUC to establish new energy efficiency standards for seven residential appliances by June 2007.

Press Release [37]
Legislation on S 2844 [38]
Map of States with Appliance Efficiency Standards [39]


Michigan Governor Signs Alternative Fuels Legislation

On July 7, 2006, Michigan Governor Jennifer Granholm signed into law legislation creating incentives for the production, distribution, and purchase of alternative fuels. The seven-bill package lowers the state tax on each gallon of ethanol-blended fuel from 19 cents to 12 cents and on biodiesel fuels from 15 cents per gallon to 12. The legislation also allows for the creation of new agriculture renaissance zones (i.e. regions of the state set aside as virtually tax-free) for companies producing ethanol and biodiesel and it provides grants to renovate or expand existing service stations to make E-85 and biodiesel available.

Press Release [40]
Map of States with Mandates and Incentives Promoting Biofuels
[41]

Missouri Requires 10 Percent Ethanol in Gasoline

On July 5, 2006, Missouri Governor Matt Blunt signed House Bill 1270, creating the Missouri Renewable Fuel Standard Act. The bill requires all but premium grade gasoline sold in Missouri to contain 10 percent ethanol by the beginning of 2008. The bill also ensures consumers the lowest-price fuel by lifting the 10 percent standard during periods when ethanol is more expensive than petroleum. Officials anticipate that Missouri’s expanding number of ethanol production facilities, growing from three to four in the near future, will be quite capable of meeting this standard.

Press Release [42]
Map of States with Mandates and Incentives Promoting Biofuels [41]

Hawaii's New Energy Laws to Boost Efficiency, Renewable Energy

On June 26, 2006, Hawaii Governor Linda Lingle signed into law SB 2957 to encourage renewable energy and renewable fuels. This law raises the income tax credit for certain renewable energy technologies, makes this tax credit permanent, and establishes a pilot financing mechanism for the purchase of residential solar hot water heater systems. SB 2957 also provides incentives to support the production of biodiesel and cellulosic ethanol. Additionally, the legislation establishes the Hawaii Renewable Hydrogen Program to move the state toward a renewable hydrogen economy. SB 2957 is part of the governor's "Energy for Tomorrow" package, which includes three other new energy laws HB 2175 appropriates $5 million for solar power systems in public schools and instructs state agencies to maximize energy efficiency. This bill also encourages new green buildings by giving them priority when they apply for construction permits and sets green building standards for state buildings. Additionally, this legislation requires 20 percent of the state's new vehicles to be hybrids or alternative fuel vehicles, with the percentage increasing in subsequent years. SB 3185 establishes a public benefits fund for energy efficiency programs and authorizes the state's Public Utility Commission (PUC) to set penalties for failing to meet the state Renewable Portfolio Standard (RPS). Finally, HB 2848 appropriates $200,000 to reconvene the Hawaii Energy Policy Forum to develop an action plan, timeline, recommendations, and benchmarks to meet the state's energy self-sufficiency goals.

Press Release [43]
HB 2175 [44]
SB 3185 [45]
HB 2848 [46]

Florida Energy Act to Promote Renewable Energy and Energy Efficiency

On June 15, 2006, Florida Governor Jeb Bush signed into law the Florida Renewable Energy Technologies and Energy Efficiency Act to reduce Florida’s dependence on foreign oil, spur economic growth, and increase investments in renewable energy sources and energy efficiency. The Act creates the Florida Energy Commission to advise the Legislature on state energy policy based on the principles of energy reliability, affordability, efficiency, and diversity. The first report by the Commission, due before December 2007, will include recommended steps and a schedule for the development of a state climate action plan through a public-involvement process to reduce GHG emissions. Additionally, the Act provides rebates for photovoltaic and solar thermal technology installations on commercial and energy buildings and a sales tax exemption for the purchase of energy efficient products. This legislation also provides grants for research and demonstration projects associated with the development of renewable energy technologies and alternative fuels.

Press Release [47]
Read the Legislation [48]
Map of States with Climate Change Commissions and Advisory Groups [14]

California Signs Agreement with Sweden for the Development of Renewable Fuels

On June 15, 2006, California Energy Commissioner Jim Boyd and Sweden Minister for the Environment signed an agreement for the joint development of biogas and other alternative fuels. The agreement aims at fostering an extensive exchange of technologies and ideas between California and Sweden to advance the use of renewable fuels. Sweden currently has the largest fleet of biogas-fueled vehicles in the world. This would allow California to take advantage of Sweden’s expertise in the production of biogas, while giving the Swedish biogas industry a better opportunity to market its technologies and products in California.

Press Release [49]
Agreement [50]

Oregon Governor Appoints Advisory Group on Climate Change

On June 14, 2006, Oregon Governor Kulongosky appointed a “Climate Change Integration Group.” The Governor has charged this new group with tracking the State’s progress on greenhouse gas emission reductions and examining the future economic implications of climate change for the state. The Climate Change Integration Group will continue the work of the 2004 Governor’s Advisory Group on Global Warming, which developed strategies for reducing greenhouse gas emissions as part of a West Coast Governors’ Global Warming Initiative. Some of the policies and measures recommended by the earlier group were endorsed by the Governor. Part of the new group’s responsibilities will be to track the progress of those efforts. The Climate Change Integration Group will also explore new opportunities for research on the mitigation of, and adaptation to, climate change in Oregon and the Pacific Northwest.

Press Release [51]
Map of States with Climate Change Commissions and Advisory Groups [14]

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