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Climate Policy Definitions
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State Advisory Board
A state advisory board is typically established by the governor and given the task of formulating recommendations on how the state should address climate change. The board’s work can include: developing an emission inventory; projecting future emissions based on expected population, economic growth, and other factors; analyzing mitigation and adaptation options; and recommending specific greenhouse gas emission reduction targets. A state advisory board typically includes state planners, policy analysts, natural resource specialists, environmentalists, and representatives from the private sector. Their expertise often represents a range of disciplines (e.g., engineering, science, economics, policy analysis) and sectors (e.g., energy, transportation, agriculture, forestry).
Regional Initiatives
Regional initiatives are designed to encourage regional collaboration in addressing climate change. They can include new initiatives specifically established for that purpose (e.g., Regional Greenhouse Gas Initiative [RGGI]), or can arise from already established regional governance systems (e.g., New England Governors and Eastern Canadian Premiers [NEG/ECP]).
Greenhouse Gas Inventory
A greenhouse gas (GHG) inventory is an accounting of the amount of GHGs emitted to and removed from the atmosphere over a specific period of time (e.g., one year). A GHG inventory provides information on the activities that cause emissions and removals, as well as background on the methods used to make the calculations. Policymakers use GHG inventories to track emission trends, develop strategies and policies, and assess progress. Scientists use GHG inventories as inputs to atmospheric and economic models.
Climate Change Action Plan
A climate change action plan is a comprehensive document that outlines a state’s response to climate change, tailored to the state’s specific circumstances. It typically includes a detailed emission inventory; baseline and projected emissions; a discussion of the potential impacts of climate change on the state’s resources; opportunities for emission reductions; emission reduction goals; and an implementation plan. It also usually identifies and recommends policy options based on criteria such as emission reduction potential, cost-effectiveness, and political feasibility. The impetus to develop an action plan might come from the legislative branch, a state agency, or the state administration. An action plan is typically developed by state officials or advisory groups in consultation with stakeholders.
Lead by Example Target
A lead by example greenhouse gas (GHG) target for government operations is a commitment to reduce government GHG emissions to a specified level by a certain timeframe (e.g., 1990 levels by 2020). Such targets can be articulated in legislation, an executive order, or a climate change action plan. A GHG target for government operations is one way that state governments can achieve emission reductions in their own facilities, demonstrate environmental leadership, and raise public awareness. Additional government lead by example policies (e.g., ENERGY STAR procurement requirements) are profiled in the Clean Energy Matrix.
Statewide Greenhouse Gas Target
A statewide greenhouse gas (GHG) target is a non-regulatory commitment to reduce statewide GHG emissions to a specified level by a certain timeframe (e.g., 1990 levels by 2020). Such targets can be included in legislation, but are more typically established by the governor in an executive order or a state advisory board in a climate change action plan.
Statewide Greenhouse Gas Cap
A statewide greenhouse gas (GHG) cap is a comprehensive, regulatory commitment to reduce statewide GHG emissions to a specified level during a certain timeframe (e.g., 1990 levels by 2020). Such an approach can include adopting regulations to require GHG emission reporting and verification, and establishing authority for monitoring and enforcing compliance with the program. An emission cap can be combined with emission trading into a “cap and trade” program (see Power Sector Cap and Trade for a description of cap and trade mechanics).
Electricity Disclosure
An electricity disclosure requirement mandates that electricity suppliers disclose the greenhouse gas (often just carbon dioxide) emissions associated with their electric generation mix to their customers.
Greenhouse Gas Registry
A greenhouse gas (GHG) registry is an official repository to which an entity reports emissions of one or more GHGs or changes in emission levels, typically annually. Participants can include companies reporting entity-wide or on a project-by-project basis; all or parts of state government operations; individuals; or other parties responsible for emissions or emission reductions. A GHG registry is subject to reporting and verification requirements to ensure data consistency and quality. GHG registries can support voluntary or mandatory reporting requirements. Some registries have been created in order to help entities document their GHG emission baselines and any voluntary reductions that could be the basis for “credit” under a future regulatory program. Although not currently a function in existing state registries, emission registries are also used by allowance tracking systems that operate within cap and trade programs (e.g., the Acid Rain Program).
Mandatory Greenhouse Gas Reporting
Mandatory greenhouse gas (GHG) reporting requires applicable companies and organizations to report their GHG emissions to a state regulatory body, usually on an annual basis. The establishing legislation typically specifies the sectors (e.g., electric generation) and the size of facilities that are covered.
Carbon Dioxide Offset Requirements
Power plant carbon dioxide (CO2) offset requirements mandate that electric generators retire CO2 emission credits (frequently procured through funding offset projects) equivalent to a percentage of their annual emissions.
Greenhouse Gas Performance Standard
A power sector greenhouse gas (GHG) performance standard is a requirement that all new power plants have emission characteristics equivalent to or better than the established standard (e.g., the most efficient combined cycle plant).
Power Sector Greenhouse Gas Cap and Trade
A power sector greenhouse gas (GHG) cap and trade program is a market-based policy tool for regulating GHG emissions from the power sector. A cap and trade program first sets a cap, or maximum limit, on emissions. Sources covered by the program then receive authorizations to emit in the form of emission allowances, with the total amount of allowances limited by the cap. Each source can design its own compliance strategy to meet the overall reduction requirements, such as selling or purchasing allowances, installing pollution controls, and implementing efficiency measures. A cap and trade program does not specify individual control requirements, but each emission source must surrender allowances equal to its actual emissions in order to comply. Sources must also completely and accurately measure and report all emissions in a timely manner to ensure that the overall cap is achieved.
Advanced Coal Technology
Advanced coal technology, such as integrated gasification combined cycle (IGCC), can achieve higher power generation efficiencies than conventional power generation technologies. Additionally, when oxygen is used in the IGCC gasifier (rather than air), the carbon dioxide (CO2) produced by the process is in a concentrated gas stream, making it easier and less expensive to capture. Once the CO2 is captured, it can be sequestered (i.e., prevented from escaping to the atmosphere). Some states provide incentives to encourage advanced coal technology, such as IGCC, with and without carbon capture and sequestration (CCS).
Greenhouse Gas Auto Standards
The California greenhouse gas (GHG) auto standard (AB 1493) establishes fleet average GHG emission requirements for two categories—passenger cars and light trucks. Expressed in carbon dioxide (CO2)-equivalents, the standard takes into account GHG emissions directly emitted (e.g., operation of vehicle, leakage of refrigerants from AC unit) and upstream emissions associated with the production of the fuel used by the vehicle. The standard was scheduled to take effect in 2006 and apply to new passenger cars and light trucks beginning in the 2009 model year, resulting in a 30 percent reduction in emissions by 2016 (compared to the 2002 fleet of new vehicles). However, California’s GHG standard requires a Clean Air Act waiver from EPA before it can take effect and EPA denied California’s waiver request in December 2007. Other states have also adopted California’s GHG standard.
Note: Because the California Air Resources Board decided to incorporate the GHG emission standards into the current Low-Emission Vehicle (LEV) program, a state wishing to adopt California’s GHG auto standards must also adopt the LEV-II standards.
Low Carbon Fuel Standard
A low carbon fuel standard (LCFS) for transportation fuels is a policy to encourage the utilization of low carbon fuels (measured on a full life-cycle basis) to reduce greenhouse gas (GHG) emissions from the transportation sector. California’s LCFS—the first and only in the United States as of 2007—requires fuel providers to ensure that the mix of fuel they sell into the California market meets, on average, a declining standard for GHG emissions (measured in CO2-equivalent grams per unit of fuel energy sold). California’s LCFS is compatible with market-based compliance mechanisms (e.g., credit banking and trading).