While the Trump Administration has stated its skepticism about climate change and actions to combat it, a number of states are planning to continue existing programs to address climate change issues and reduce greenhouse gas emissions (GHGs). These programs also help in encouraging energy conservation and reducing the need for infrastructure upgrades, resulting in greater reliability of the electric grid and significant cost savings for businesses and consumers.

On the day of President Trump’s inauguration, Jan. 20, 2017, the California Air Resources Board (CARB) released a draft Scoping Plan to reduce state GHGs. Under the state’s climate change law, Assembly Bill (AB) 32, CARB is required to produce a scoping plan every 5 years. The proposed plan may result in changes to the state’s GHG emission rules and cap and trade program in order to meet California’s enacted goals to reduce GHGs by 40% from 1990 levels by 2030. The proposed plan would extend the state’s cap-and-trade program out to 2030. CARB auctions off remaining emission allowances to sources of GHG emissions as the cap declines to the long-term reduction goal. The proposed plan would also require oil refineries to reduce their GHG emissions by 20%. CARB plans to issue a final Scoping Plan by the spring of this year.

The proposed plan makes no change to the state’s current Renewable Portfolio Standard of 50% of electricity from renewable energy sources by 2030. It adds a goal of reducing methane and hydrofluorocarbon emissions by 40% from 2013 levels by 2030.

CARB’s grand 40% GHG emission reduction goal was planned to be met mainly by the cap and trade program with enactment of some mandatory GHG emission reductions by certain industries. However, because there is litigation against the program (that the state does not have the legal authority to manage a mandatory cap and trade program) the proposed scoping document looks into alternative strategies for CARB to pursue, including additional industry-specific GHG emission reduction rules, a carbon tax, or a “cap and tax” system, which would consist of a more flexible cap and trade system together with a carbon tax for each ton of GHG emitted.

The Regional Greenhouse Gas Initiative (RGGI) composed of 9 Northeast and Mid-Atlantic states’ cap and trade program for utilities continues to progress well. The 2016 RGGI adjusted cap was 64.6 million short tons, decreasing 2.5% each year until 2020. The average price of CO2 allowances at the latest auction was about $3.55/ton. An estimated $4 billion in funds over the length of the program has been returned to the 9 states to implement energy efficiency programs.

While these are rules pertaining directly to climate change, there are myriad more rules that many states, cities, etc. are enacting and enforcing that will result in reducing GHG emissions. These include many energy benchmarking and conservation rules. New ones appear to be coming up “every day”. (For example, St. Louis just finalized an energy benchmarking rule.)

CCES has the experts to help you assess your GHG emissions and help you reduce it to maximize your financial benefits whether you are in a GHG program or not. Contact us today at 914-584-6720 or at karell@CCESworld.com