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EPRI Presentation on Climate Policy at 2008 Border Energy Forum (October 2008)
Global Climate Change research program staff member Delavane Diaz participated in a panel discussion at the U.S. - Mexico Border Energy Forum in Monterrey, Mexico on October 23rd. Ms. Diaz discussed the challenge of cutting carbon emissions from the electric sector and described potential strategies to achieve those emissions reductions under a mandatory climate policy. Her presentation also highlighted results from an EPRI study being done in collaboration with 9 utilities in the Western U.S. on the impact of a carbon price on regional power markets. Ms. Diaz's presentation can be downloaded here. For more information, please contact Delavane Diaz (ddiaz@epri.com, 650-855-2332).

EPRI Presents at CA Climate Action Registry 2008 Annual Meeting (October 2008)
On 10/7/08, EPRI's Adam Diamant participated in a panel discussion focused on the potential to achieve greenhouse gas (GHG) emissions reductions from the electric sector at the 2008 Annual Meeting of the California Climate Action Registry (CCAR). Mr. Diamant presented results from a recent EPRI collaborative analysis of "CO2 Price Impacts on Western Power Markets." This analysis originally was developed at EPRI by Vic Niemeyer and was supported by nine electric companies that operate in the WECC region. Mr. Diamant's presentation can be downloaded here. For more information, please contact Adam Diamant (510-260-9105; adiamant@epri.com).

EPRI Cosponsors 8th Annual Workshop on International GHG Emission Trading (October 2008)
The 8th Annual Workshop on Greenhouse Gas Emission Trading was held in Paris, France on Sept. 22-24. Cosponsored by EPRI, the International Energy Agency (IEA), and the International Emissions Trading Association (IETA), the workshop provided an opportunity for government, industry, broker, finance, and nongovernmental agency representatives to discuss key issues relating to the ongoing evolution of international climate policies and international greenhouse gas (GHG) trading. Tom Wilson and Adam Diamant from EPRI chaired several workshop sessions, made presentations, and provided opening and closing remarks. The workshop combined presentations of papers on recent research with extended discussions among participants on the following topics:

• Country Roundtable - Update on Emerging GHG Trading Programs Around the World
• The Potential for Carbon Markets and Innovative Finance to Drive Low-Carbon Technology Development and Deployment
• Institutional Management of Carbon Markets
• GHG Market News
• Overlapping Policies with GHG Emissions Trading Schemes
• Offsets: From Micro to Macro
• Linking Domestic Emissions Trading Schemes and the Post-2012 International Climate Policy

EPRI Hosts 2^nd GHG Emissions Offset Policy Dialogue Workshop (September 2008)
On September 10, 2008, EPRI hosted the second workshop in a series that comprise the EPRI Greenhouse Gas Emissions Offset Policy Dialogue project. Approximately 65 representatives from the policymaking, environmental, industrial, financial, and research communities participated. Workshop discussions focused on different approaches that potentially can be used to implement the offset concept of “additionality,” and on the potential impact of quantitative and qualitative restrictions on offset use for compliance with potential future carbon constraints. All of the project and workshop background materials and expert presentations can be downloaded here. For more information, please contact Adam Diamant (510-260-9105); adiamant@epri.com

EPRI Presents on "Potential Impacts of a U.S. Climate Policy on the Electric Sector" at the Co-Bank 2008 Executive Forum, Beaver Creek, CO (August 2008)
Global Climate research program staff member Adam Diamant made a presentation to more than 100 senior executives from electric power generation and transmission (G&T) and distribution cooperatives at the Co-Bank 2008 Executive Forum. Mr. Diamant's presentation included an overview of the daunting challenge faced by the U.S. electric sector in light of potential near-term, mandatory climate mitigation policies. Mr. Diamant also discussed the potential impact of CO₂ emissions prices on electric company operations and net revenue in the Western U.S. Also, Mr. Diamant described how electric companies can use an analytic approach developed by EPRI to better understand the extent to which "internal" GHG emissions abatement projects implemented within an electric company can help a company to comply with potential mandatory CO₂ emissions reductions. Mr. Diamant's presentation can be downloaded here. For more information, please contact Adam Diamant (510-260-9105; adiamant@epri.com).

EPRI Greenhouse Gas Emissions Offset Policy Dialogue Hosts First Workshop in Washington, D.C. (June 2008)
On June 26, 2008, EPRI hosted the first of three workshops that will be held in Washington DC this year as part of the EPRI GHG Emissions Offset Policy Dialogue Project. The first workshop was designed to provide EPRI members and other invited project participants with a common understanding of the potential benefits and risks associated with GHG abatement projects that create offsets based upon experience that can be drawn from existing offset programs, such as the Clean Development Mechanism (CDM) and evolving regional programs in the U.S. and elsewhere. EPRI's Offset Dialogue project is using a “lessons-learned” approach to identify key elements of offset policy designs that may help to: (1) achieve environmental integrity; (2) promote large-scale GHG emissions reductions; and (3) reduce various risks that have made it difficult to mobilize capital to develop large-sacle offset projects under existing programs. This workshop included presentations by EPRI staff and a variety of external experts actively engaged in the design, implementation, financing and regulation of GHG offset projects both domestically and internationally, as well as those involved in offset policy development. Workshop presentations can be downloaded here . For more information, contact Adam Diamant (adiamant@epri.com; 510-260-9105).

EPRI-Western Climate Policy Impacts Collaborative Webcast Presentation (June 2008)
Presentation of preliminary results from EPRI Collaborative Study to Assess the Impact of Climate Policy on Western Power Markets. These results were presented for comment at a webcast on June 5, 2008 (download here). The webcast was repeated June 24th, 2008 and included additional thoughts and discussions (download here).

EPRI Presentation on GHG Emissions Inventories at Midwest Energy Policy, Climate Change and Energy Security Conference, St. Louis, MO (May 2008)
On May 20, 2008, EPRI global climate research staff member Adam Diamant made a presentation about greenhouse gas (GHG) emissions inventories for electric companies at the Midwest Energy Policy, Climate Change and Energy Security Conference hosted by Ameren. Mr. Diamant described what an emissions inventories is, how it is structured, the benefits to companies of completing a comprehensive quantitative inventory and the evolution of emissions registries, emissions inventory protocols and methodologies and project-specific "offset" protocols. Mr. Diamant highlighted special issues and challenges faced by the electric sector in conducting GHG emissions inventories. Mr. Diamant's presentation can be downloaded here. For more information, please contact Adam Diamant (510-260-9105; adiamant@epri.com).

How Climate Policy Could Impact Electric Sector Emission Trading (April 2008)
Victor Niemeyer participated in the Environmental Markets Association meeting in Miami, April 29 through May 1. The attached slides were presented in support of his remarks at the closing Roundtable & Conference Wrap Up. The primary messages were that the electric sector is likely to become a key player in CO2 emission trading if climate policy is enacted that has two key features in current proposed legislation: First, a policy goal of cutting emissions below existing levels is projected by many analyses to result in CO2 allowance prices ranging from $30 to over $200 per ton. Second, if allocations to electric generators are a small and declining portion of their current emissions levels they well be driven to participate in the market to a much greater degree than with the Acid Rain Program. Finally, slow development of secondary markets for allowances could create a scramble for allowances to cover emissions in initial compliance years. Mr. Niemeyer's presentation can be downloaded here.

Meeting materials from the Northeast Carbon Management & Sustainability Meeting (April 2008)
Meeting materials from the Northeast Carbon Management & Sustainability Meeting (April 30, 2008) now available. Click here to download.

EPRI Presentation on GHG Emissions Offsets at 2008 RMEL Generation Conference (April 2008)
On April 17, 2008, EPRI staff member Adam Diamant made a presention about greenhouse gas emissions (GHG) offsets at the RMEL 2008 Generation Conference on "Carbon Issues and Strategies" in Denver CO. Mr. Diamant presented a comprehensive overview of the important role greenhouse gas (GHG) emissions offsets can play in existing and evolving GHG cap and trade programs at the International, domestic and regional levels. His presentation discussed different ways companies can incorporate GHG emissiosn offsets into their future carbon emissions compliance strategies, and how offsets can help to meet global GHG emissions reduction targets faster and at comparatively low cost. Mr. Diamant's presentation also described the role GHG offsets play in the EU Emissions Trading Scheme (EU ETS), the UN’s Clean Development Mechanism (CDM) and (JI) programs, the New South Wales (Australia) program and the emerging programs in California and the Northeast Regional Greenhouse Gas Initiative (RGGI). Mr. Diamant's presentation can be downloaded here. For more information, please contact Adam Diamant (510-260-9105; adiamant@epri.com).

EPRI Webcast on the European Union's CO2 Emissions Trading Scheme (EU ETS) -- P102 & P103 Members Only (April 2008)
On 4/1/08, EPRI hosted a webcast overview of the European Union's CO2 Emissions Trading Scheme (EU ETS) for members of EPRI Programs 8, 102 and 103. Recently, U.S. policy makers, members of the electric sector and other stakeholders have expressed increased interest in understanding better the design, implementation and operation of the EU ETS. This interest has been driven by the rapid evolution of regional climate policy programs in the U.S., such as RGGI in the Northeast and the Western Climate Initiative (WCI) in the West, and the rapid development of active federal legislative proposals that would create a U.S. national greenhouse gas emissions trading scheme. This EPRI webcast provided an overview of the design, implementation and operation of the EU ETS, and lessons that may be learned by U.S. policy makers and others from the EU's experience. Members of EPRI Programs 102 and 103 can download the webcast presentation here. For more information, contact Adam Diamant (510-260-9105; adiamant@epri.com).

EPRI Webcast on CO2 Emissions Cost Containment -- P102 & P103 Members Only (April 2008)
This EPRI webcast reviewed key information and insights drawn from EPRI's 8th Global Climate Policy Design Forum on CO2 Cost Containment that took place March 5, 2008 in Washington D.C. This workshop was the 8th in our series of EPRI Global Climate Policy Design Forums that are intended to inform members of EPRI's global climate change research programs about key issues to be considered in the design of evolving domestic and international policies to address global climate change. This workshop included presentations by EPRI staff and a variety of external experts actively engaged in the design and analysis of potential greenhouse gas emissions cost containment approaches. The webcast presentation is available to members of EPRI research programs 102 and 103 and can be downloaded here. For more information, contact Adam Diamant (adiamant@epri.com; 510-260-9105).

EPRI Presentation to Morgan Stanley’s 15^th Annual Global Electricity & Energy Conference in New York (April 2008)
These slides were part of a Climate Change panel discussion exploring how climate policy would affect the electric power sector. Also on the panel were Anne Smith, CRA, and John Bryson, SCE. The presentation can be downloaded here. For more information contact Victor Niemeyer, niemeyer@epri.com, 650-855-2744.

EPRI Webcast on GHG Allowance Auction Design -- P102 & P103 Members Only (March 2008)
On 3/14/08, EPRI hosted a webcast to review the results of EPRI's 6th GHG Policy Design Forum on "Greenhouse Gas Emissions Allowance Auction Design" that took place in December 2007 in Washington DC. While there has been a great deal of discussion and debate surrounding whether and to what extent GHG emissions allowances potentially should be allocated via auctions in emerging GHG cap and trade programs, there has been relatively little attention paid to the actual design of GHG auctions and the challenges that large-scale auctions could pose to electric companies. This EPRI Forum engaged EPRI Climate Program Members, EPRI staff and outside experts in a discussion about key issues surrounding the design of large-scale auctions to allocate GHG emissions allowances as part implementation of existing and potential domestic regional or national GHG emissions cap and trade regulatory programs. EPRI Program 102 and 103 members can download the webcast presentation here. For more information, contact Adam Diamant (510-260-9105; adiamant@epri.com).

EPRI CO2 Emissions Cost Containment Workshop -- P102 & P103 Members Only (March 2008)
On March 5, 2008, EPRI hosted a workshop in Washington DC to explore the potential need for and the design of potential policies to contain expected costs of CO2 emissions and to contain the volatility of CO2 prices in any future CO2 emission cap and trade system that could be implemented domestically in the U.S. This workshop was the 8th in our series of EPRI Global Climate Policy Design Forums that are intended to inform members of EPRI's global climate change research programs about key issues to be considered in the design of evolving domestic and international policies to address global climate change. This workshop included presentations by EPRI staff and a variety of external experts actively engaged in the design and analysis of potential emissions cost containment approaches. Workshop presentations are available to members of EPRI research programs 102 and 103 and can be downloaded here. For more information, contact Adam Diamant (adiamant@epri.com; 510-260-9105).

EPRI Presents at Pioneering Carbon Forum America Conference in San Francisco, CA (February 2008)
On February 25-26, 2008, EPRI staff and management participated as speakers in a number of different sessions as part of the first large-scale Carbon Expo and Trade show held in the U.S. This first annual "Carbon Forum America" event, sponsored by the International Emissions Trading Association (IETA) and Koelnmesse, brought together more than 1,500 attendees and speakers to discuss the evolution of climate policies in the U. S. and internationally and the rapidly expanding carbon trading around the world. Bryan Hannegan, EPRI's Vice President of Environment and Generation Research, highlighted EPRI's well-known PRISM/MERGE analysis as part of a discussion about "Driving Innovation in a New Global Carbon Market." Tom Wilson discussed the role of new low carbon power generation technologies in addressing global climate change and the challenges new technologies face. Adam Diamant provided a comprehensive overview of the European Union's Emissions Trading Scheme (EU ETS). And, Vic Niemeyer discussed the challenge to electric utilities in planning compliance for the first year of a stringent climate policy with only limited allocations of allowances to regulated sources. These EPRI presentations can be downloaded here. For more information, contact Adam Diamant (adiamant@epri.com; 510-260-9105).

EPRI Presentation on N2O Emissions Offsets at 11th EUEC Event in Tucson, AZ (January 2008)
On 1/29/08, EPRI Senior Project Manager Adam Diamant made a presentation at the EUEC conference in Tucson, AZ entitled "Developing Greenhouse Gas Emissions Offsets by Reducing Nitrous Oxide (N2O) Emissions in Agricultural Crop Production." This presentation can be downloaded here. Mr. Diamant's presentation described a new three-year long EPRI supplemental project to investigate the potential to create GHG emissions reduction offsets by reducing nitrogen fertilizer use in agricultural production. This EPRI-sponsored research project is supported by eight member electric companies and is investigating an innovative approach to developing large-scale and potentially cost-effective greenhouse gas (GHG) emissions offsets that could be implemented across broad geographic areas of the U.S. and internationally. This project is designed to increase the breadth of options available to electric companies to offset their GHG emissions in response to potential future carbon constraints. Preliminary data from early first year field studies appear to support the underlying hypothesis that N2O emissions can be reduced substantially by changing fertilizer management in agricultural crop production with little concomitant loss in annual crop yields. For more information, contact Adam Diamant (510-260-9105; adiamant@epri.com).

EPRI Webcast on Corporate GHG Emissions Inventories and Accounting Protocols (January 2008)
On January 11, 2008, EPRI's Program 103 hosted its 7th Global Climate Policy Design Forum on Greenhouse Gas (GHG) Emissions Accounting. This EPRI webcast was intended to provide members of EPRI Global Climate Research programs with a comprehensive overview of corporate-wide GHG emissions accounting issues, the various GHG emissions accounting protocols in use today, and the similarities and differences between these GHG accounting protocols. This EPRI webcast was conducted by the non-profit Greenhouse Gas Management Institute (www.ghginstitute.org). EPRI Program 102 and 103 members can download the webcast presentation here. For more information, contact Adam Diamant (510-260-9105; adiamant@epri.com).

Report Published on EPRI Updated Macroeconomic Analysis of CAT Strategies in California (January 2008)
An Updated Macroeconomic Analysis of Recent California Climate Action Team Strategies (1015510). This report presents the results of analyses conducted to examine the macroeconomic effects of nine climate policy scenarios included in the Sep. 7, 2007, draft update report from Cal/EPA’s California Climate Action Team (CAT). This report considers the question of "market failure" and whether or not there are pervasive opportunities for net economic benefits from government regulations designed to correct these "failures." CAT and EPRI reached different conclusions about the pervasiveness of market failures. EPRI’s view, supported by a large body of economic literature, is that market failures in the economy are real but not pervasive throughout the economy; however, the CAT analyses assume that significant numbers of consumers and businesses are responding incorrectly to price signals in the economy and that economic benefits will result from government regulations related to energy efficiency. EPRI’s analysis, rather than measuring implementation costs only in terms of changes in gross state product (GSP), also focused on potential gains or losses to the state's economic welfare. Such welfare impacts—defined in terms of changes in future consumption—provide a measure of how policy implementation decisions will actually affect the average Californian. Key findings in this report include:

• Market-based strategies such as cap-and-trade programs would cost California less than command-and-control strategies.
• The economic costs of achieving AB 32 GHG emission reductions can vary by as much as 25% depending on specific implementation choices.
• Using measures such as changes in GSP and personal income for a single year can be misleading when comparing policies; longer-term measures are needed. (The MRN-NEEM analysis period extends from 2010 to 2050.)
• Exempting sectors from the statewide cap and addressing their emissions either solely through efficiency standards or by omitting their emissions from control altogether increases the overall cost of reaching California's emissions targets.
• The benefits of offsets are substantial. Allowing California to meet 10% of its emission reduction obligations through offsets lowers the economic loss by 15% to 20% compared with a scenario in which no offsets are allowed.

This study explored some key issues associated with California's current climate policy. Many important policy decisions remain, and the results of these choices will likely have significant implications for California's economy. The details of implementation will affect electricity and energy markets along with all other aspects of California's economy. Getting the "rules right" will likely affect the rest of the country as well, since California's leadership role places it in a position of influence as other states and regions consider legislation. For more information, contact Larry Williams, (650) 855-2695, ljwillia@epri.com.

Technical Update Published on Project to Reduce N₂O Emissions in Crop Production (January 2008)
Developing Greenhouse Gas Emissions Offsets by Reducing Nitrous Oxide (N2O) Emissions in Agricultural Crop Production (1015463). Nitrous oxide (N₂O) is a significant greenhouse gas: each ton of N₂O emitted into the atmosphere is equivalent in global warming potential to 296 tons of CO2. EPRI launched a three-year research project in the fall of 2006 to investigate the potential to reduce use of nitrogen fertilizer in agricultural production, thereby reducing N₂O emissions into the atmosphere. This Technical Update covers the first year of the project, including an overview and preliminary results from on-farm research. In the project's first year, progress has been made on all tasks, including

• assembling geospatial databases needed for regional modeling work and linking these databases to the Soil Organic Carbon Reserves And Transformations in EcoSystems (SOCRATES)-N₂O model. The model estimates changes in topsoil carbon and nitrogen; the nitrogen portion is being modified to include specific algorithms for N₂O evolution.
• establishing N₂O test plots fertilized at different rates on commercial growers’ fields and measuring N₂O fluxes from these plots,
• installing, at Michigan State University’s Kellogg Biological Station, a near-continuous N₂O measurement system on a set of field crops fertilized at different rates, and
• initiating farmer focus group activities.

Guide Published on DOE’s Revised 1605(b) Program for Voluntary Reporting of Greenhouse Gas Emissions (January 2008)
Participating in the U.S. Department of Energy Revised “1605(b)” Program for the Voluntary Reporting of Greenhouse Gas Emissions: A Guide for U.S. Electric Companies (1016147). On June 1, 2006, the U.S. Department of Energy’s (DOE’s) revised Guidelines for Voluntary Greenhouse Gas Reporting took effect. The revised guidelines include a number of major changes to the original 1605(b) program, first implemented in 1994. These changes are likely to improve the accuracy, reliability, and verifiability of GHG emission measurements; however, they are also likely to make the program less flexible and more regulatory in nature and to require much greater commitment of staff and financial resources. This Technical Update

• explains the revised 1605(b) rules and how they apply to electric companies,
• evaluates potential staff and other resources requirements for participants,
• helps electric companies determine if they qualify to report or register GHG reductions under the revised program, and
• evaluates potential benefits and risks of participation.

Overview of Project-Based Mechanisms to Offset GHGs Published (January 2008)
A Comprehensive Overview of Project-Based Mechanisms to Offset Greenhouse Gas Emissions (1014085) is now available. This technical update provides a broad discussion of project-based mechanisms to create GHG emissions offsets as part of domestic or international efforts to mitigate climate change. The report includes the history of the development of project-based mechanisms, the GHG accounting methodologies used, and the status and trends of major GHG emission trading schemes worldwide that employ them. Project-based mechanisms monetize GHG emissions reductions through the issuance of tradable financial instruments, commonly referred to as offsets or credits. Offsets provide electric companies with an opportunity to comply cost-efficiently with mandatory emission reductions, which at times can be achieved at less cost at a location outside the company’s operations. Emission trading schemes, like cap-and-trade, regulate what kind of offsets are eligible and to what extent offsets may be used for compliance. This report can be downloaded here. Topics in this report include:

• an overview of GHG project and allowance markets,
• the Kyoto Protocol,
• the European Union Emission Trading Scheme,
• the New South Wales Greenhouse Gas Reduction Scheme,
• the U.S. Northeast Regional Greenhouse Gas Initiative,
• voluntary carbon markets,
• the Clean Development Mechanism (CDM) process,
• methodologies and standards in voluntary markets,
• an overview of project-based market transactions,
• price drivers for offsets,
• industry players, and
• involvement strategies.

Richels’ Work for CCSP Recognized (January 2008)
In September, Richard Richels was presented an Appreciation Award from the U.S. Department of Energy’s Under Secretary for Science. The award stated that it was “in recognition of your service to the Department of Energy and your important contributions to advance the knowledge frontiers in climate research.” The award recognized Richels’ work for the U.S. Climate Change Science Program (CCSP).