BOARD MEETING DATE: April 4, 2008
AGENDA NO. 24

REPORT:

Climate Change Committee

SYNOPSIS:

The Climate Change Committee met Thursday, March 20, 2008. 
Following is a summary of that meeting.

RECOMMENDED ACTION:

Receive and file the attached report.

Ronald O. Loveridge, Acting Chair
Climate Change Committee

Attendance

Committee Member Ronald Loveridge, Acting Chair, participating via teleconference, called the meeting to order at 10:40 a.m. Committee Member Tonia Reyes Uranga participated via videoconference. Absent were Chairman Burke, Vice Chair Gary Ovitt, and Committee Member Miguel Pulido. The following items were presented:

ACTION/DISCUSSION ITEMS:

1. Welcome and Introductions
   Dr. Barry Wallerstein, Executive Officer welcomed the Committee members and others attending the meeting.
    
2. Background
   Dr. Barry Wallerstein made opening comments regarding this first meeting of the Climate Change Committee and how climate change affects nearly all parts of the District’s programs. This meeting will focus on the Chairman’s Initiative for the SoCal Climate Solutions Exchange. There will be a full discussion of climate change and District programs at the upcoming Board Retreat, and subsequent Climate Change Committee meetings will cover other topics.
    
3. Technical Advisory Group
   Dr. Elaine Chang, Deputy Executive Officer described how staff has formed a Technical Advisory Group, per the Board’s approval of the work plan for the SoCal Climate Solutions Exchange. Members include representatives from industry groups, local government representatives, academic members, the CARB, and representatives from the California Climate Action Registry.
    
4. Initial Staff Concepts
   Jill Whynot, Director of Strategic Initiatives described staff’s initial concepts for the SoCal Climate Solutions Exchange. The objectives are to provide the opportunity for voluntary early reductions from businesses in the Basin. This will assist local businesses that need mitigation for CEQA, and may have potential use in future greenhouse gas programs.

Ms. Whynot discussed how protocols would be developed in cooperation with CARB and the California Climate Action Registry. District staff would verify reductions, and issue certificates, which could be registered and traded on the SoCal Climate Solutions Exchange. An Air Quality Investment Fund is also envisioned where parties could pay the District, and pooled funding would be used for environmentally beneficial climate change projects.

The Chicago Climate Exchange is an example of a greenhouse gas trading exchange that includes facilities under a voluntary cap-and-trade program with a declining balance and an offset component. Offsets are generated and trading occurs through world wide participants.
 

5. Feedback from Technical Advisory Group
   Jill Whynot described some of the initial feedback and comments from the first Technical Advisory Group meeting, which was held on March 19, 2008. Many good comments, questions, and suggestions were raised. Major issues raised were related to consistency among various agencies, surplus issues, protocol development, and the role of mitigation projects located outside of the District.
    
6. Open Discussion
   Staff answered questions from the Committee members. Board Member Loveridge inquired whether there has been any interest expressed in early greenhouse gas reductions for participation in this program. Dr. Wallerstein responded that investors, permitted facilities, and other markets have expressed interest. Board member Loveridge also asked if other air districts are considering similar programs. Staff is aware of interest in a few other air districts.

Board Member Reyes Uranga asked if there had been any negative feedback so far regarding the SoCal Climate Solutions Exchange. Dr. Wallerstein commented that the concept has been received positively, and that many details need to be developed. The CARB staff sees benefits to this program in stimulating early reductions and supports working cooperatively on this effort. Board member Reyes Uranga inquired whether staff intended to base fees and costs on a percentage or cost recovery. Staff indicated that their intent is for the latter. Board member Reyes Uranga asked what happens after reductions expire and suggested that there be periodic evaluation and Board oversight. Staff concurred.

7. Next Steps/Schedule
   After the Board Retreat in April, a schedule and a list of agenda topics for future Committee meetings will be developed.
    
8. Other Business
    None
   
9. Public Comment
   Christine Grandstaff from CantorCO₂e asked whether the intent was to have a registry or exchange. Ms. Whynot responded that the intent was to include an exchange, and details would need to be worked out.

Greg Adams, Los Angeles County Sanitation Districts, mentioned that the Home Rule Advisory Group has recently formed a Climate Change subcommittee. Minutes from those meetings will be forwarded to this Committee. Mayor Loveridge expressed his appreciation.

The meeting adjourned at 11:25 a.m.

Attachment
Attendance Roster

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
CLIMATE CHANGE COMMITTEE
MARCH 20, 2008
ATTENDANCE ROSTER