Climate Change News: Provided by HARC and Tom Cortina, Managing Director.

Climate Change
International Negotiations
New post-2012 treaty being negotiated at COP 15 in December in Copenhagen
Wide gap between US (1990 levels in 2020) and EU (20-40% below 1990 levels in 2020)
Commitments from large developing countries like China and India key issue
Funding for developing countries key issue
Likely to be some type of political agreement or framework, to be followed by negotiation of details of full fledged treaty next year

Senate Climate Bill (S. 1733)
Clean Energy Jobs and American Power Act (Kerry-Boxer, S. 1733)
Creates an economy-wide cap-and-trade program covering 85% of US greenhouse gas (GHG) emissions
Intended to reduce GHG emissions by 20% below 2005 levels in 2020, and 83% in 2050
Reported out of the Environment and Public Works Committee without amendments by an 11-1 vote, with Republican members boycotting the mark-up due to an incomplete EPA analysis

Senate Climate Bill (S. 1733)
HFC Provisions
Almost identical to House bill
Hydrofluorocarbons (HFCs) are covered separately from other GHGs by amending Title VI of the CAA (ODS regulations)
Class II substances would be split into two groups, with group I containing the HCFCs and group II containing the HFCs
Overall production of HFCs is phased down beginning in 2012 and ending in 2032

Senate Climate Bill (S. 1733)
HFC Reduction Schedule
2012 - 90% of baseline 2023 - 54%
2013 - 87.5% 2024 - 50%
2014 - 85% 2025 - 46%
2015 - 82.5% 2026 - 42%
2016 - 80% 2027 - 38%
2017 - 77.5% 2028 - 34%
2018 - 75% 2029 - 30%
2019 - 71% 2030 - 25%
2020 - 67% 2031 - 21%
2021 - 63% 2032 - 17%
2022 - 59% after 2032 - 15%

Senate Climate Bill (S. 1733)
HFC Provisions - Allowances
Allowances are required to produce/import HFCs, or import products containing HFCs
The minimum auction price and non-auction sales price for allowances are set in the early years of the program as follows:
$1.00 per MT in 2012, $1.20 in 2013, $1.40 in 2014
Minimum auction price rises to $1.60 in 2015, $1.80 in 2016, $2.00 in 2017, and then increases with inflation for the rest of the program

Senate Climate Bill (S. 1733)
HFC Provisions - Allowance Cost
At $1.00 per metric ton (2012):
HFC-227ea = $1.46 per pound (GWP = 3,220)
HFC-125 = $1.59 per pound (GWP = 3,500)
HFC-236fa = $4.46 per pound (GWP = 9,810)
HFC-23 = $6.73 per pound (GWP = 14,800)
At $2.00 per metric ton (2017):
HFC-227ea = $2.93 per pound
HFC-125 = $3.18 per pound
HFC-236fa = $8.92 per pound
HFC-23 = $13.45 per pound

Senate Climate Bill (S. 1733)
HFC Provisions - Labeling/Assistance
Essential use, labeling, nonessential product, safe alternatives, and other provisions of Title VI would be extended to HFCs
Products containing or made with HFCs would be required to be labeled with the phrase “contributing to global warming”
Provides possible funding to manufacturers of products containing HFCs, including fire protection systems, to facilitate the transition to low-carbon alternatives

Senate Climate Bill (S. 1733)
HFC Provisions - Essential Use
Essential use provisions would allow EPA to withhold allowances from under the cap and allocate them specifically to produce HFCs for medical devices, aviation and space flight safety, fire suppression, and national security
Essential use provisions would also allow EPA to approve additional HFC production above the cap for developing countries, national security, and fire suppression

Senate Climate Bill (S. 1733)
HFC Provisions - Destruction
Offset credits are provided at a 20% discount for destruction of CFCs after 2011 in the US
EPA can add other class I or class II ODS
EPA can add ODS destruction to list of offset projects that receive credit in main program
CFC destruction projects that occur between 2009 and 2012 and are recognized under a State or comparable program could receive credit under the early offset provisions

Senate Climate Bill (S. 1733)
Prospects for Passage
Expected to be taken up again in Spring 2010
Senators Kerry (D-MA), Graham (R-SC) and Lieberman (I-CT) are currently working on the framework of a compromise that could get bipartisan support and the 60 votes needed to pass the Senate
Must still be reconciled with House bill
If not done by mid-2010, could be difficult to pass in an election year

HEEP Update
Final report of 2002-2007 data was released in May
2008 data collection is underway
18 of 21 companies have reported to date
Expect to have 2008 collection completed and report on the data at March meeting

Climate Action Reserve
Climate Action Reserve is a non-profit national GHG offset registry - associated with California Climate Action Registry
Develop project standards and register and track voluntary offset credits
Have decided to move forward with protocol development for ODS destruction, halons not included due to questions of indirect GWP
Draft ODS project protocols now available for public comment - due December 18
Public workshop on December 7 in DC