Q&A with Mary Nichols, Chair of the California Air Resources Board

The Climate Action Reserve recently had the opportunity to ask Mary Nichols, Chair of the California Air Resources Board, a few questions about California’s climate change policies and the future regulatory landscape for carbon.

Given your experience working on behalf of the environment and the public health at both the state and federal levels, what impact would you say AB 32 has had outside California?

Since AB 32 passed in 2006, it has had considerable success with other states interested in getting involved in their air and greenhouse gas programs. It’s not a long statue, but it has been influential. Some of the specific rules developed under to implement the law, especially the low carbon fuel standard, have been studied by other states. Also, the idea that the State of California created this program and used the air regulatory agency as the planning agency to develop a plan of achieving a targeted emissions goal has been inspiring to our colleagues in other air pollution agencies.

Cap-and-trade was demonized in the recent national elections. Why do you believe it should be included in the policy mix for addressing climate change?

Cap-and-trade was used as a tool to attack some existing members of congress who voted for the Waxman-Markey bill. It was used because the term “cap-and-trade” doesn’t mean much to people but it sounds in some way sinister, especially when people are worried about manipulation and fraud in the world of finance. It has the potential connotation for people on the left and right as government-condoned manipulation of the market. Obviously, that‘s not a desirable program. But when people are questioned in polls, they are in favor of putting a lid on the total amount of greenhouse gases emitted and when asked if they are in favor of polluters being able to meet their regulatory requirements through buying allowances, the public, in general, is very supportive of those kinds of tools. The concept that cap-and-trade isn’t selling well in the market doesn’t mean it isn’t a valuable policy; it means we need to do a better job of explaining it.

If California is going to reduce its emissions to 1990 levels by 2020, we need to find a way to ensure we are going to meet this target and do it in a way that sends a signal to businesses that aren’t currently involved in any existing regulations that there’s a value in reducing carbon. The way to do that is to put a price on carbon emissions. The cap-and-trade program is about the easiest way to do that. The alternative would be to impose a carbon tax, as British Columbia did — a revenue neutral carbon tax in that case. Reducing greenhouse gases through that program has proved to be quite acceptable to the public there. Now in California, what people dislike even more than regulation is taxes. That was not considered to be a political starter when we were figuring out the regulation here.

What are some of the most important lessons from past cap-and-trade programs that ARB has incorporated into the design of the California cap-and-trade regulation?

There were positive and negative lessons. The positive lessons were the successes of the federal acid rain program and the 1990 Clean Air Act amendment. If you have a good measurement, monitoring and reporting system, you can run a very well regulated market in emissions allowances — and, you can do it in a way that demonstrates you really have reduced the pollution without any market scandals and failures at all. Another very positive lesson was that you can make these programs work well if you set up the structure of the program correctly, have strong enough enforcement tools, and make the reporting transparent and visible to the public.

On the negative side, we learned from the European trading system launch that if you don’t have very good information about the level of total emissions you’re trying to reduce, and if you give away too many allowances at the beginning of the program, it takes a very long time before you get to any real improvements. We’re being very careful in the launch of our program to make sure we are not overallocating allowances.

How important do you think the role of offset credits is in California’s cap-and-trade program?

Offsets are a very important tool in assuring regulated industries and the public that the costs of a cap-and-trade program can be managed within reasonable bounds. If you didn’t have high quality offsets that can be used for compliance purposes, you could see situations where a company might be unable to grow or expand in California or to meet its limits without having a huge run-up in prices of the allowances. The offsets serve as a way to keep the prices of the allowances within a reasonable boundary. Offsets also provide a way for businesses that aren’t under any compliance obligations to participate in the cap-and-trade program, make money and help reduce overall emissions. For example, offsets created by better management of dairies provide multiple benefits: they help with manure management, they provide the dairy farmer with revenue, and they produce another energy source. It is really a win-win proposition.

When do you anticipate ARB will look at additional protocol types for inclusion in the cap-and-trade program?

I expect we’ll be starting right after the first of the year to work on a priority list.

You also served as Chair of ARB under Governor Jerry Brown from 1978 to 1983. When Governor-elect Brown assumes his new position next year, what changes do you think ARB might see?

First of all, Governor-elect Brown has a very strong record of accomplishments with ARB.. During his first terms in office, California led the way nationally on setting strong emissions standards for motor vehicles. We were the pioneer with the catalytic converter, taking the lead out of gasoline and converting our utilities from fuel oil containing sulfur to generate electricity. You don’t see any of that in California now. Measures taken under Governor Jerry Brown were extremely important in achieving breakthroughs in pollution control. I would expect that focus on public health to continue.

As Attorney General, Jerry Brown also has an impressive list of accomplishments. He worked with Governor Schwarzenegger in setting greenhouse gas standards for vehicles and requiring local governments to consider the impact on climate when they make decisions on development projects.

It will be a seamless transition from Governor Schwarzenegger to Governor Brown on climate policy, but in regards to overall focus, I see two potential changes. Governor Brown has indicated his major priority is dealing with the state’s financial crisis and getting our budgetary issues in order. His focus is going to be more on solving that crisis, at least initially, rather than on attending international climate change conferences. But I don’t expect him to spend his entire term in office on those issues. He has a strong interest in international issues and he will also play a role on the world stage. Also, I expect that the creation of green jobs will be a higher focus of concern than it has been for the current administration. Governor Brown undoubtedly is going to be focused on finding ways to further enhance California’s attractiveness to developers of renewable energy and clean tech projects.

Environment and energy policy experts Elizabeth Moler and James Mack join Climate Action Reserve Board of Directors

Two new Board seats add depth and experience in US and Canadian federal policy affairs

LOS ANGELES, CA – The Climate Action Reserve, North America’s largest carbon offset registry, announced that Elizabeth (Betsy) Moler, a former Chair of the Federal Energy Regulatory Commission (FERC) and Deputy Secretary of the U.S. Department of Energy under President Clinton, and James Mack, Head of the British Columbia Climate Action Secretariat in the Ministry of Environment, have been elected to its Board of Directors.

I am extremely honored to have the privilege of welcoming Mr. Mack and Ms. Moler to the Reserve Board of Directors,” said Linda Adams, Secretary of the California Environmental Protection Agency and Chair of the Climate Action Reserve Board of Directors. “Mr. Mack has a strong list of accomplishments in implementing British Columbia’s climate change goals, and Ms. Moler is a nationally recognized energy policy expert with unparalleled experience in the energy industry and federal government affairs. The experience and depth they each bring to the Board will be invaluable in leading the growth of the Climate Action Reserve.

Ms. Moler most recently served as Executive Vice President, Government Affairs and Policy for Exelon Corporation where she led the company’s team on climate change policy issues. Prior to that, she established a very notable career in government service, serving as a staff member on Capitol Hill for 20 years. She was Senior Counsel for the U.S. Senate Committee on Energy and Natural Resources from 1976 to 1988 and was appointed by Presidents Ronald Reagan, George H.W. Bush and Bill Clinton as a Member of FERC from 1988 to 1997. In 1993, President Clinton designated her as Chair of FERC and in June 1997, he appointed her as the Deputy Secretary, U.S. Department of Energy (DOE).

I was delighted to be asked to join the Board of Directors of the Climate Action Reserve. The organization has successfully demonstrated the importance of providing market-based approaches to finding ways to address climate change and curbing greenhouse gas emissions. Having served both as a regulator and a utility executive, I hope that my experience will assist the organization in developing creative, cost-effective approaches to offset standards and protocols,” said Ms. Moler.

As the Head of the British Columbia Climate Action Secretariat in the Ministry of Environment, Mr. Mack is responsible for leading the province’s initiatives to achieve its greenhouse gas emissions reduction targets. Prior to joining the Secretariat, Mr. Mack worked for the Government of Canada on environmental, social and economic development issues in Ottawa.

Please visit the Climate Action Reserve website to learn more about the organization and its Board of Directors.

Errata and Clarifications released for Nitric Acid Production Project Protocol, Version 1.0

Reserve forestry commitment featured at CGI

John Podesta announces the Climate Action Reserve’s forestry commitment at the Clinton Global Initiative Annual Meeting

U.S. Version 3.0 and Mexico Version 2.0 Livestock Project Protocols were adopted by Reserve Board on September 29, 2010

New guidelines broaden opportunities for livestock operations to gain financial benefits from reducing their GHG emissions

The Climate Action Reserve continues to uphold rigorous standards in offset projects with the release of version 3.0 of its Livestock Project Protocol

Los Angeles, CA – The Climate Action Reserve, North America’s largest carbon offset registry, released version 3.0 of the Livestock Project Protocol, providing updated guidelines for livestock operations to participate in the carbon market. Significant amounts of methane, which is over 21 times more potent to the atmosphere than carbon dioxide, can be produced at livestock operations. With the updated livestock protocol, operations have more opportunities to reduce their methane emissions and earn offset credits that can be sold in the carbon market.

The Livestock Project Protocol ensures the integrity and long-term environmental benefit of installing manure biogas control systems at livestock operations, including dairy cattle and swine farms. With this protocol, operations that capture and destroy methane from livestock manure before it is released into the atmosphere receive carbon offset credits that can be traded in the carbon market

The protocol ensures that livestock operations can effectively reduce greenhouse gases and thrive while earning offset credits in a carbon market,” said Linda Adams, Secretary of the California Environmental Protection Agency and Chair of the Climate Action Reserve Board of Directors.

Version 3.0 of the protocol includes revised guidance on determining the greenhouse gas (GHG) assessment boundary of projects. This includes clear details on the standard stocking rates and new options for complying with the reporting period and verification requirements to reduce verification costs. All offset projects registered with the Climate Action Reserve are required to undergo independent, third-party verification.

Livestock manure management provides a key opportunity to reduce significant methane emissions, while at the same time generating revenue for the livestock operator. Version 3.0 of the Livestock Project Protocol recognizes that opportunity and ensures that livestock manure management projects are developed, quantified and verified with the highest level of integrity,” said Gary Gero, President of the Climate Action Reserve.

The Climate Action Reserve also released version 2.0 of the Mexico Livestock Project Protocol, which provides guidance for livestock offset projects in Mexico. To date, livestock projects registered with the Climate Action Reserve have reduced 151,903 metric tons of CO₂e from the atmosphere, equivalent to taking over 29,000 passenger vehicles off the road annually. The original livestock protocol was adopted by the Climate Action Reserve Board of Directors in June 2007 for projects in the United States.

Please visit the Climate Action Reserve website to access the Livestock Project Protocol Version 3.0, as well as all public comments regarding the protocol and the submitted responses to the comments.

The Climate Action Reserve continues to uphold rigorous standards in offset projects with the release of version 3.0 of its Livestock Project Protocol

Los Angeles, ca – The Climate Action Reserve, North America’s largest carbon offset registry, released version 3.0 of the Livestock Project Protocol, providing updated guidelines for livestock operations to participate in the carbon market. Significant amounts of methane, which is over 21 times more potent to the atmosphere than carbon dioxide, can be produced at livestock operations. With the updated livestock protocol, operations have more opportunities to reduce their methane emissions and earn offset credits that can be sold in the carbon market.

“The protocol ensures that livestock operations can effectively reduce greenhouse gases and thrive while earning offset credits in a carbon market,” said Linda Adams, Secretary of the California Environmental Protection Agency and Chair of the Climate Action Reserve Board of Directors.

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2/LIVESTOCK 3.0

“Livestock manure management provides a key opportunity to reduce significant methane emissions, while at the same time generating revenue for the livestock operator. Version 3.0 of the Livestock Project Protocol recognizes that opportunity and ensures that livestock manure management projects are developed, quantified and verified with the highest level of integrity,” said Gary Gero, President of the Climate Action Reserve.

Letter from the President: The most important climate change policy issue facing us

Dear friends and colleagues,

In November, a decision is going to be made on the most important clean energy policy we have in the U.S. right now. If you’re not following it, you should be. I’ll tell you why.

Proposition 23 will appear on the California ballot November 2. Spearheaded by Texas oil companies, the proposition would repeal California’s landmark climate change law, AB 32, which has paved the way for hundreds of thousands of clean energy jobs and billions of dollars in investments. You may think that because it’s a California ballot measure, no one outside of the state needs to be concerned. But, the reality is that every person across the country – even across the world – who supports clean energy and clean air should not only be taking notice but also taking action.

If it succeeds, Prop 23 will kill the strongest clean energy policy ever passed in the United States. It will create significant roadblocks for clean energy job creation, investments and innovation. It will discredit landmark environmental initiatives developed from the collaborative work of business, government, academia and environmental groups. It will increase our dependence on imported oil and decimate newly emerging clean energy businesses like wind, solar and energy efficiency. And, it will set a precedent we can’t afford by repealing a public health law that had already been adopted and is already cleaning the air we breathe.

All of this will have strong implications for other states and for the nation. If the proponents of this proposition show it is possible to overturn clean air laws in California, we won’t recover for years to come and other public health laws around the country will be put into jeopardy. No matter where you live – whether it’s New York City or Seattle or St. Louis – approval of this proposition will affect you.

There are several actions you can take to help ensure this deceptive ballot measure does not pass.

First, join the Climate Action Reserve in supporting the No on Prop 23 campaign. You can be listed as an opponent to the Dirty Energy Proposition as an individual or as an organization. It only takes a few seconds and you can start right now by clicking here.

You can also take your support one step further by becoming a Clean Energy Leader. These people serve as volunteer leaders in educating others on this proposition. Once you join the No on Prop 23 campaign, you will have the option of continuing on as a Clean Energy Leader.

Second, you can donate money to the No on Prop 23 campaign. We need all of the donations we can get to fight the funding from Texas oil companies Valero and Tesoro and billionaire oil barons Charles and David Koch, owners of Koch Industries and numerous oil refineries. To donate, please visit https://secure.donationsafe.com/sde/.

I urge you to get the facts and learn more about No on Prop 23. Please join the Reserve on Thursday, October 21, 2010 for a special webinar discussing the proposition and its impact on clean energy development, job growth, and regional and federal policy initiatives. For more information on the webinar or to register, please click here. For more information on No on Prop 23, please visit www.stopdirtyenergyprop.com.

The Climate Action Reserve has always strongly advocated collaboration among multi-stakeholder groups to effectively address climate change issues. Opposing Prop 23 is no different. All of us must stand together in protecting the progress we have already made and the progress we’ll make in the future.

Sincerely,
Gary Gero

Register now for Agriculture Protocols Scoping Meetings in Chicago, Modesto, and Washington DC

The Livestock Project Protocol U.S. Version 3.0 and Mexico Version 2.0 will be presented for adoption at September 29 Reserve Board meeting

Forest Project Protocol Version 3.2 was adopted by Reserve Board on August 31