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We thought friends of The Wendel Forum might be interested in this upcoming event.  The Air & Waste Management Association will be hosting a program to be held at the Wendel Rosen law firm on December 12, 2012.  Registration by December 10 is required to attend.

Come learn more about the first carbon allowance auction, which was held in November, from the perspective of participating industry experts and financial market players.

The speakers will cover auction process, logistics, carbon pricing, the reaction of the markets and various industries, and the motivation behind the legal challenge filed by the California Chamber of Commerce, as well as the implications for future auctions and markets.  We will leave ample time for Q&A from the audience.

BACKGROUND

Pursuant to AB 32, implementing regulations for California’s cap and trade were adopted on December 13, 2011.  They are contained in Article 5:  “California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms.”

After several postponements, and in the face of a last-minute legal challenge, on November 14, 2012 the Air Resources Board conducted the first auction of allowances for the first compliance period starting on January 1, 2013 and for vintage year 2015.

Those affected by the program include electricity generators, carbon dioxide suppliers, petroleum and natural gas facilities and large industrial sources that emit 25,000 metric tons of CO2 (equivalent) per year or more.  On November 13th, the California Chamber of Commerce filed a lawsuit challenging certain provisions of ARB’s cap-and-trade program.

MODERATOR

Jonathan Redding, Environmental Partner at Wendel, Rosen, Black & Dean LLP

Jonathan Redding

Jonathan Redding, program moderator and environmental partner at Wendel Rosen

SPEAKERS

Brad Neff is Manager of AB 32 Cap and Trade Imple

mentation for PG&E.  Brad’s responsibilities at PG&E include coordinating the overall cap and trade implementation effort—including regulatory affairs, market readiness, and customer impact.  Brad graduated top of his class from the University of Utah in both Finance and Economics.  Brad also holds an MBA from HEC Paris where he was the president of the Sustainability Club and developed a renewable energy business plan for EDF’s green energy services group.

He will be introducing the basics of the Auction process and PG&E’s perspective on cap and trade.

Loren Kaye is President of the California Foundation for Commerce and Education, an affiliate of the California Chamber of Commerce, and a Gubernatorial appointee to the Little Hoover Commission.  Prior to joining the Foundation in 2006, Loren served in senior policy positions for Governors Pete Wilson and George Deukmejian, including Cabinet Secretary to the Governor and Undersecretary of the California Trade and Commerce Agency.

He will speak on the motivations for and reasons why the Chamber of Commerce opposes the auction and filed the lawsuit.  In short, the lawsuit does not challenge any of the provisions of AB 32 nor the merits of climate change science.  The only issue addressed in the litigation is the portion of CARB’s regulatory program that seeks to permit the Board to allocate to itself GHG emissions allowances and to profit by selling them to GHG emitters.

Dusty Granet is a Broker with BGC Environmental Brokerage Services L.P. (BGC).  He joined BGC in January 2012 from Evolution Markets where he spent three years advising the environmental marketplace on California emissions and U.S. water markets.

He will be speaking about pre action and post auction carbon pricing and market reactions on the process and the pricing; options within the secondary market for future transactions involving allowances and offsets; and how to minimize risks through the OTC market.

IMPORTANT:  Pre-registration is required for this event.

AGENDA
– 5:00 pm – Arrival/Reception
– 5:30 pm – Dinner
– 6:00 pm – Presentation
– 8:00 pm – Adjournment
To register visit: http://www.awma-gws.org/events/20121212/index.html

In Episode 56 of The Wendel Forum (originally aired on March 31, 2012, on 960 KNEW AM radio), show host Dick Lyons speaks with Paul Baier, Vice President of Sustainability Consulting at Groom Energy.  Paul assists the company’s customers with their sustainability and energy reduction strategies, carbon footprint and responses to supply chain surveys.

Paul Baier of Groom Energy

In addition, Paul authors a sustainability blog called Practical Sustainability and moderates EnterpriseSmartGrid.org.  He is a senior contributor and VERGE Global Advisory Board member for Greenbiz.com and is the primary author of a report on large enterprise smart grid and energy management software called “The 2011 Enterprise Carbon Accounting (ECA) Software Market: A Buyer’s Guide.”  Paul sits at the forefront of issues related to large scale energy use by major organizations.

Dick and Paul discuss how large companies grapple with energy management and reduction – not an easy task.  These companies face many challenging when it comes to energy and carbon measuring, management and reporting.  First, they have to figure out what to track, then how.  Most are responding to regulatory demands, need for better cost savings and what Paul refers to as “consumer compliance.”

Often the first step is trying to put their arms around what energy use really means in their business.  Some companies are surprised that, in addition to improving their sustainability footprint, they can save significant amounts of money by implementing energy management initiatives.  Once they realize that, most are prepared to put significant resources to the task.   For many manufacturers and distributors, powerful companies like Walmart put pressure on them to complete rigorous supplier surveys to explain their strategies and results. 

For single-facility operations it’s hard enough, but many of these suppliers have facilities around the globe, each with different standards, measurement systems, accounting systems and processes for collecting and tracking the information ultimately needed to institute a company-wide program.   Paul helps these companies manage this complex process.  

Helping companies to identify direct effect, indirect effect, and the overall impact in supply chain (Scope 1, scope 2 and scope 3), Paul observes that companies are becoming more sophisticated in identifying the hidden impacts of the entire supply chain. 

Management people have been trying to anticipate cap and trade, carbon tracking, and what will happen as AB32 (in California) and other legislation dictates change for their industries.

As Paul says,

“Energy management is the flip side of carbon management.”

Paul and Dick discuss the types of providers who are stepping into the marketplace and the kinds of risks that various vertical markets must address in their forecasting models. The technologies being developed today will allow greater and greater precision and flexibility in tracking both the carbon footprint and the energy management of our major industries.  And with the rise of cloud computing, the storage and processing options continue to become more affordable for even smaller companies.  Paul suggests that because of the software, data storage and other advancements in recent years, precision energy management is no longer a technical problem, it’s a “willingness problem.”

Certainly the regulatory environmental, as well as consumer demand will continue to influence the willingness of companies to address these issues in significant ways.

  

Post Links:

Listen to the interview with Paul Baier:  Episode 56 of The Wendel Forum(27:44 mins; mp3)

Groom Energy website: www.groomenergy.com

Paul Baier’s blog: http://practicalsustainability.blogspot.com/

GreenBiz.com website: http://www.greenbiz.com

Report link: http://www.groomenergy.com/eca_report_summary.html

960 KNEW AM Radio website: http://www.960KNEW.com

Dick Lyons’ online profile: http://www.wendel.com/rlyons

 

[Note: Thanks to Wendel Rosen attorney Greg Jung for this update and guest post.  You can be sure we'll be watching what happens with cap-and-trade in California.]

Greg Jung, attorney at Wendel Rosen

Greg Jung, attorney at Wendel Rosen

On Tuesday, the San Francisco Superior Court Judge who had previously ruled in March 2011 that the California Air Resources Board (CARB) had not adequately considered alternatives to its plan to create a cap-and-trade market for carbon emissions found that CARB has demonstrated satisfactory compliance with adequately complied with his prior orders. (ASSOCIATION OF IRRITATED RESIDENTS et al VS. CALIFORNIA AIR RESOURCES BOARD et al , case no. CPF-09-509562.)

This order paves the way for California to implement the cap-and-trade program. CARB approved and submitted its final cap-and-trade regulations to the California Office of Administrative Law in October 2011. The program is scheduled to take effect in 2013 and is part of the regulations implementing the Global Warming Solutions Act of 2006 (AB32), which requires California to reduce greenhouse gas (GHG) emissions to 1990 levels by 2020.

Post Links:

Superior Court of California, County of San Francisco, Register of Actions in case: http://webaccess.sftc.org/Scripts/Magic94/mgrqispi94.dll?APPNAME=IJS&PRGNAME=ROA22&ARGUMENTS=-ACPF09509562

AB32 Bill Text: http://www.leginfo.ca.gov/pub/05-06/bill/asm/ab_0001-0050/ab_32_bill_20060927_chaptered.pdf

CARB website info on AB 32: http://www.arb.ca.gov/cc/ab32/ab32.htm

Climate Change Education

March 28, 2011

The San Francisco Superior Court, Judge Ernest Goldsmith presiding, has handed the plaintiffs in the matter of Irritated Residents, et al. v. California Air Resources Board, et al. (CARB ruling), a significant victory – for the moment.  Judge Goldsmith ruled that the California Air Resources Board failed to properly consider alternatives to their championed cap-and-trade program, a main tenet of California’s landmark global warming law, AB 32.  The regulators must now go back and consider other alternatives to a cap-and-trade program, which certain people contend (environmental activists amongst them), does not adequately address the issue of greenhouse gas emissions.  While this ruling does not defeat California’s efforts to tackle climate change, it most certainly slows it down by sending the regulators back to the drawing board for the time being.

But, what is the real significance of this ruling?  Who really understands the CEQA issues (besides lawyers and certain interested parties) that were at issue here?  Indeed, while many people seem to harbor strong opinions about the general subject of climate change , its cause(s), and the steps that we should take to address it, it is not clear how many people actually know enough about the nuances of the topic to opine in such definitive fashion.

To this end, in the upcoming weeks on The Wendel Forum radio program, we will speak to the Alliance for Climate Education (“ACE”), a Bay-Area non-profit group whose mission is to educate high school students on the science behind climate change and inspire them to take action to curb the causes of global warming.   ACE developed its unique education programs to address this problem because no public agencies, schools or organizations working to educate youth on climate science existed at an appropriately large scale.  In just two years of operations, ACE has become the national leader in high school climate education, with an effective offering that includes the ACE Assembly, Student Action Programs and Leadership Trainings.

Stay tuned to The Wendel Forum to learn more about climate science, ACE, and their significant efforts to educate our children about the issue and what they can do to help address the problem. 

Post Links:

Court’s ruling in the matter of Association of Irritated Residents, et al. v. California Air Resources Board, et al., PDF, linked here:  CARB ruling.

Alliance for Climate Education: http://www.acespace.org/

Well, it’s finally here.  Episode 1 of The Wendel Forum aired on Green 960 AM radio at 11:26 a.m. on Saturday, February 5!  This episode provides a clear, concise overview of cap and trade.  We’d really like to get your feedback. Post your questions about cap and trade here.  We’ll try to address them in future episodes.  What do you anticipate the most pressing issues around cap and trade to be for your business?

Each week we will address the legal side of the green economy, including organics and natural products, renewable energy, green building, clean tech, intellectual property, and more. Future programs will include guest speakers from the firm’s attorney roster, as well as green industry leaders.

We hope that this blog will help to facilitate a conversation and inspire subjects for future episodes.  So add your voice to the conversation.  Let us know which green business topics interest you!

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