AMERICA’SLOW-CARBON
FUTUREA “BOTTOM-UP”
OPPORTUNITY AGENDA
FOR CLIMATE ACTION
IN THE UNITED STATESTABLE OF
CONTENTSINTRODUCTION

210 HIGH IMPACT CLIMATE ACTION STRATEGIESFOR STATES, CITIES, AND BUSINESSES6WHY REAL ECONOMY ACTORS CAN LEAD THE WAY

ELECTRICITYDOUBLE DOWN ON RENEWABLE ENERGY TARGETS

478

ACCELERATE THE RETIREMENT OF COAL POWER

11

RETROFIT BUILDINGS AT KEY TRIGGER POINTS15

BUILDINGS

ELECTRIFY BUILDING ENERGY USE

TRANSPORTATIONACCELERATE ELECTRIC VEHICLE ADOPTIONHYDROFLUOROCARBONS (HFCS)PHASE OUT SUPER-POLLUTING HFCSOIL & GAS METHANESTOP METHANE LEAKS AT THE WELLHEAD
REDUCE METHANE LEAKS IN CITIESNATURAL LANDSREGIONAL STRATEGIES FOR CARBON SEQUESTRATION
IN NATURAL AND WORKING LANDS

14
18
20
21
23
24
27
28
30
32
33

ECONOMY-WIDE CARBON PRICING

36

CONCLUSION

39

STATE COALITION FOR CARBON PRICING37

1

In the United States, opportunities for climate leadership exist at every level of governance.
Despite the inaction on climate change within the federal government, it is the actions
taken by communities, day-to-day investment decisions made by businesses, local solutions
implemented by mayors and city councils, and win-win energy and environmental policies
set by state governors and legislatures that are laying the groundwork for America’s
low-carbon future.
Whether such decisions are taken primarily for reasons related to the global climate, toprotect public health, or because they make economic sense, the thousands of decentralized
and bottom-up actions of American businesses, cities, and states have already significantly
influenced the trajectory of U.S. greenhouse gas emissions over the near- to medium-term.
Although some of these actions occur under the radar, they make a significant impact on the
global emissions trajectory.
In light of President Trump’s announcement that he intends to withdraw from the Paris
Climate Change Agreement and roll back key elements of his predecessor’s Climate Action
Plan, we believe that a decentralized, bottom-up agenda for U.S. climate action is not only
achievable, but in fact already exists and is being implemented quietly and swiftly.
The 10-part “Opportunity Agenda” contained herein previews a more detailed analysis ofthese actions and their potential that will be released later this year at the Global Climate
Action Summit. It covers a wide range of existing policies, programs, and initiatives led by
U.S. businesses, cities, colleges & universities, and states regardless of the rhetoric or eventhe policy decisions emanating from the federal government. In the weeks, months, andyears ahead, U.S. nonfederal leaders can do much more to build upon the successes alreadycaptured in these 10 areas.
From supermarket chains phasing out super-polluting refrigerant gases on a more
accelerated timeline, to cities pooling their buying power to spur demand for electricvehicles, to states collaborating on policies that store carbon in soils, there is plenty of
meaningful action available for U.S. climate leaders to enact. This Opportunity Agenda
identifies some of the best levers for nonfederal climate action.

MARY NICHOLS
Chair, California Air Resources Board andVice-Chair, America’s Pledge Initiative

CARL POPE
Vice-Chair, America’s Pledge Initiative

2

INTRODUCTION
Following President Trump’s June 2017 announcement to withdraw the United States fromthe Paris Agreement, the response from across the United States was swift and significant.
An unprecedented coalition of cities, states, businesses, universities, and others announced
their continued support for the agreement and pledged to take action to ensure the UnitedStates stays on track to achieving the U.S. emissions reduction target. National governments
across the world rallied behind the Paris Agreement as well, demonstrating a robust,
sustained, and unshakeable consensus for climate action.
A month later, in July 2017, former New York City Mayor Michael Bloomberg and California
Governor Jerry Brown launched America’s Pledge, an initiative to analyze, catalyze, andshowcase climate leadership by U.S. governors, mayors, and CEOs. In November 2017,
Bloomberg and Brown released a comprehensive survey of U.S. climate action led by states,
cities, and businesses at the UN Climate Conference in Bonn, Germany. This report helped
solidify international understanding of, and confidence in, U.S. climate action by showingthat real economy actors outside the federal government representing more than half the
U.S. economy—equivalent to the third largest country in the world—remain committed to
the Paris Agreement and are already driving decarbonization forward.
However, meeting the ambitious goals of the Paris Agreement—limiting global temperaturerise to well below 2 degrees—will require bolder action at a faster pace by a broader rangeof real economy actors. In the United States, a lack of federal leadership has made the pathforward unclear, particularly in the critical pre-2020 window, when policy and investment
decisions will set the trajectory of decarbonization for decades to come.

3

At the 2018 Global Climate Action Summit, to be held in San Francisco in September,
Governor Brown and Mike Bloomberg will release a first-of-its-kind bottom-up climate action
quantitative analysis. It will model the entire American economy, laying out how states,
cities, businesses, and other real economy actors can take charge of U.S. decarbonization
and accelerate further progress in the near-term while the federal government remains
stagnant on climate action.
The report, building on this bottom-up opportunity agenda, details:
1.

Existing commitments and their impact: How real economy climate commitments
are driving U.S. economy-wide emissions reductions;

2.

Opportunities for high ambition: A roadmap of opportunities for governors, mayors,
and CEOs to lead climate action while advancing the interests of their residents,
customers, and shareholders;

3.

Emissions analysis: Projected U.S. emissions trajectories through 2025 and 2030
resulting from existing real economy commitments, potential incremental emission
reductions, as well as from eventual renewed federal engagement; and4.

Leadership case studies: How some of America’s most innovative states, cities, andcompanies are delivering on their existing commitments and showing the way for
their peers.

4

WHY REALECONOMY ACTORSCAN LEAD THE WAY
Tackling global climate change demands a multistakeholder partnership and deep
collaboration between national governments and their broader societies: states, cities,businesses, universities, communities, and other real economy actors whose decisions
shape greenhouse gas emissions, drive innovation, and are determinative of the speed
and direction of the global low-carbon energy transition. While nonfederal actors matter inevery country, this kind of decentralized climate leadership is critical in the United States
because bottom-up action has been the most powerful driver of major economic and socialtransitions in American history. Specifically:
STATES

Control many of the most powerful climate policy levers, from renewable
portfolio standards to air pollution regulations. States will often take after
their peers: early mover states typically demonstrate successful models andthen engage others to follow. Supreme Court of the United States JusticeLouis Brandeis famously called states the “laboratories of democracy” dueto their ability to innovate and experiment with diverse policy solutions.
This is true of energy and climate as much today as it was true of leading
public policy issues in his time nearly 80 years ago.

5

CITIES &COUNTIES

Control city planning, building standards and permits, public transportation,
waste management and zoning, all critically important to climate mitigation.
Increasingly they seek to serve their populations by exercising greater
control over such economic factors as the sources and prices of electricity,modes of transportation, and climate resilience. In particular, large cities
and counties represent sizable shares of state and regional economies,
taxes, and energy demand. Indeed, the largest 25 urban areas in the UnitedStates account for 46% of total GDP,1 and 6% of climate emissions.2

BUSINESSES

Do not set public policy; however, they will direct or influence much of
the carbon-emitting asset base (energy, industry, and buildings) acrosswide swaths of the economy. Business leadership and policy often affects
operations across multiple facilities, setting the terms of engagement forcomplex and multilayered supply chains across a large geographic scope,
often spanning many states and even multiple countries. Businesses consume
a substantial share of the nation’s energy and can make decisions about how
to source electricity and heat. They can heavily influence transportationrelated CO2, methane, and hydrofluorocarbon (HFC) emissions as well.

1

Bureau of Economic Analysis, Gross Domestic Product by Metropolitan Area, 2016.

2

Department of Energy. State and Local Energy Data resource.

6

10 HIGH IMPACT
CLIMATE ACTIONSTRATEGIES FOR
STATES, CITIES, AND
BUSINESSES
In its bottom-up climate action plan, the America’s Pledge initiative models theemissions impact of a specific set of strategies for sectoral transformation in electricity,
buildings, transportation, HFCs, methane, natural lands, and economy-wide carbon pricing.
Central to this are 10 high-impact opportunities for near-term, nonfederal emissions
reduction opportunities. These are areas where intensified engagement by states,
cities or businesses can significantly contribute to the overall U.S. decarbonization pathway
over the coming years. These 10 opportunities are previewed here.
1.

DOUBLE DOWN ON RENEWABLE ENERGY TARGETS

3.

RETROFIT BUILDINGS AT KEY TRIGGER POINTS

2.
4.
5.
6.
7.
8.
9.

ACCELERATE THE RETIREMENT OF COAL POWER
ELECTRIFY BUILDING ENERGY USE

ACCELERATE ELECTRIC VEHICLE ADOPTIONPHASE OUT SUPER-POLLUTING HFCSSTOP METHANE LEAKS AT THE WELLHEAD
REDUCE METHANE LEAKS IN CITIESREGIONAL STRATEGIES FOR CARBON SEQUESTRATION IN NATURAL AND WORKING LANDS

10. STATE COALITIONS FOR CARBON PRICING

7

2016 GHG Emissions(MMT CO2e)

ELECTRICITY
28% (1842 MMT CO2e)

Generating the electricity needed to power U.S. homes and businesses, manufacture
goods, and—increasingly—electric vehicles is responsible for 28% of U.S. greenhouse gas
emissions. The power sector has made significant progress cutting carbon pollution in recent
years by retiring coal plants, replacing them with natural gas and renewables, and continuing
to advance the efficiency of buildings. As a result, power sector carbon dioxide emissions
have declined by 28% since 2005,3 and is on-track to meet the goal’s of President Obama’s
Clean Power Plan ahead of schedule.
More opportunities remain. 42% of the country’s electricity consumption occurs in the morethan 1,400 cities that are a part of the U.S. Conference of Mayors,4 and 31% of the nation’s
power is consumed in states that have joined the U.S. Climate Alliance, which is committed
to the Paris climate goals.5 Despite the rollback of the Clean Power Plan, the first-everfederal limit on carbon pollution from power plants, U.S. states, cities, and businesses
have the resources at their disposal to significantly scale renewable power generation
and accelerate the retirement of coal-fired electricity generating units, two of the mostimportant changes needed for continued emissions reductions. Perhaps as important, thereis economic motivation, as low-carbon electricity is cheaper, better for the health of theircitizens, and an increasing competitive advantage in attracting business.

3

U.S. Energy Information Administration, “Table 12.6 Carbon Dioxide Emissions From Energy Consumption: Electric Power Sector,” Monthly Energy Review, May 2018,https://www.eia.gov/totalenergy/data/monthly/pdf/sec12_9.pdf

4

EESI. Fact Sheet - The U.S. Climate Alliance and Related Actions, August 14, 2017, http://www.eesi.org/papers/view/fact-sheet-the-u.s.-climate-alliance-and-related-actions.

5

U.S. Energy Information Administration, America’s Pledge analysis.

8

01.

DOUBLE DOWNON RENEWABLE
ENERGY TARGETS
Renewable energy targets are a critical lever for climate action—e.g., 29 states of allpolitical stripes have already set renewable portfolio standards. These policies have beena critical driver of demand for solar and wind energy over the past years, ensuring steadymarket growth for cheaper, cleaner sources of energy. Increasingly, cities and businesses
are setting ambitious renewable energy targets of their own, achieving them either throughpower purchase agreements, the negotiation of specific markets, or other strategies that
increase the demand for clean electricity. When cities, state policymakers, corporate
renewable energy buyers, and utility companies work together to develop integrated
strategies across stakeholder groups, they can drive progress even faster. Ratcheting up
renewable energy commitments at a time of plummeting solar and wind costs and rapid
evolution of business model solutions represents a major portion of the overall potential
within the electricity sector.

9CASE STUDYThe Renewable Energy Buyers Alliance (REBA) is a collaborative effort led by four non-profit
organizations to accelerate and scale procurement of renewable energy. REBA exists to help
energy buyers like corporations, cities, and public institutions power their operations withclean energy by helping them understand the benefits of moving to renewables, connecting
large buyer demand to renewable energy supply, and helping utilities better understandand serve the needs of all energy buyers. REBA brings together all market actors throughannual gatherings and monthly calls to collectively overcome the largest barriers to meeting
ambitious renewable energy targets. Today, over 250 companies and institutions work
participate in REBA to accelerate the transition in the energy sector towards a low carbon
future. Since 2013, these organizations have announced over 12GW of new renewableenergy capacity.
Salesforce, one organization participating in REBA, is more than halfway towards theirgoal of matching 100% of their global electricity use with renewable energy. The majorityof that progress has come from Virtual Power Purchase Agreements in West Virginia andTexas, as well Renewable Energy Tariffs. Moving forward they’re focused on building adiverse portfolio of renewable energy projects which minimize risk and maximize emissions
reductions. However they recognize that matching electricity use is only an initial step
towards the long term goal of shifting the worlds power supply completely to clean energy
resources. To reach that long term goal Salesforce relies on collaboration through groups
like REBA to affect change on a global scale.

10“ At Salesforce, we believe the business of business
is improving the state of the world and now morethan ever we are seeing the growing demand forcompanies to take initiative and tackle climate issues.
Salesforce is committed to creating a sustainable,
low-carbon future by integrating sustainability
throughout our business. This includes managing
our own environmental footprint and leveraging thepower of our organization as we continue to grow.”

Patrick Flynn,
Senior Director of
Sustainability, Salesforce

11

02.

ACCELERATETHE RETIREMENT
OF COAL POWER
Coal was an engine of American economic growth 100 years ago, but its role in the modern
economy is ending as cheaper, cleaner sources of energy win out in the market. Because
coal is the single largest source of carbon pollution per unit of energy, and coal-fired power
plants contribute a significant share of conventional air pollutants such as sulfur dioxide,
nitrous oxide, particulate matter, and mercury, coal plants are often uneconomic to run
when forced to internalize the costs of this pollution via the installation of scrubbers andother costly pollution-control equipment. Since 2010, due in part to an unparalleled publiccampaign led by the Sierra Club, America’s oldest and largest environmental organization,
270 coal-fired power plants have either been fully retired or their retirement has been
proposed. Markets are now driving this process, as Bloomberg New Energy Financeestimates that over 50% of the remaining U.S. coal fleet is financially unstable. However,plants in certain regulated markets can remain in use even when they lose money, with
ratepayers footing the bill. Consequently, the pace of retirements remains too slow to reachour U.S. and international climate goals. Working together, states, cities, businesses, andother stakeholders can accelerate retirements between 2018 and 2025 and help reach thelevel needed to keep the United States on a pathway to 2ºC.

12CASE STUDY
After years of coordinated advocacy and sustained organizing, Colorado’s Xcel Energy
utility announced plans in June 2018 to implement the single largest national proposal
to replace retiring coal power with renewable energy in American history. Xcel plans toaccelerate retirement of one-third of its coal fleet, replace that with major new additionsof wind, solar, and battery storage, and add no new gas-fired generation, bringing theutility’s portfolio to 55% renewable energy. In their request for proposals for this plan, Xcel
received the lowest bids for wind and solar ever received by any U.S. utility, and this shift willsave their customers an estimated $215 million. The utility is also investing in an economictransition pathway for the community that is home to the coal-fired power plants, largely due
to advocacy from thousands of their customers sending comments and attending hearings
to demand this change. The cities of Pueblo, Aspen, and Boulder have all declared theircommitment to meet 100% of their electricity needs with the low-cost clean energy sourcesthat already employ more Coloradans than coal and gas combined.
Here’s the Xcel plan by the numbers:•

Construct 1,131 megawatts (MW) of new wind power, 707 MW of new solar power,and 275 MW of new battery storage.

•

Accelerate retirement of 660 MW of its coal-fleet (about one-third of its Colorado fleet).

•

Include purchase of 383 MW of existing gas plants, but no new gas construction.

•

Increase its share of renewable energy in Colorado from about 29% to more than
50% by 2026.

•

Reduce its carbon emissions by 59% as compared to a 2005 baseline.

•

Result in at least $213 million in savings as compared to continued operation of all
Comanche coal-fired generation units.

13“ Accelerating coal plant retirements and replacingthat coal with clean energy is the biggest immediate
opportunity we have in the U.S. to reduce climate
pollution, and grassroots advocates are seizing that
opportunity. Thanks to a decade of advocacy, we’vealready won retirement of over half the coal plants
in the U.S., and this spring, coal power generation
fell to an all-time low, while wind and solar reached
an all-time high. In the U.S., decisions about how we
produce electricity are made in states and cities, notin Washington, DC, and the Beyond Coal Campaign
will continue to be there whenever and whereverthose decisions are made. No matter who is in the
White House, we will keep making progress towardmoving America off of dirty coal and toward 100%
clean energy.”

Mary Anne Hitt,
Director of the Sierra Club
Beyond Coal campaign

142016 GHG Emissions(MMT CO2e)

BUILDINGS
8% (524 MMT CO2e)

Commercial and residential buildings are the source of 28% of U.S. emissions, which
includes 8% of U.S. emissions from direct fuel use and 20% from electricity use. Slashingthese emissions by 15% through energy efficiency and clean energy supply would save acumulative 1.9 billion tons of carbon dioxide equivalent through 2025. Utilities, cities, andstates each play a significant role in advancing these solutions:•Utilities largely manage energy efficiency program design and implementation,
including providing incentives and raising awareness.

•

Cities direct policies and regulations for building standards, in particular setting codes
for new construction and larger retrofits of existing buildings.

•

States set overall direction through state energy policy and strategy, appliancestandards, regulation of utilities and, in some cases, building codes.

15

03.

RETROFIT
BUILDINGS AT KEY
TRIGGER POINTSNew homes and commercial properties are getting more energy efficient, but addressing
the carbon footprint of existing buildings is a more significant challenge. Fortunately,
advances in technology and business models have opened new opportunities to implementbuilding retrofits in cost-effective ways, including for rental properties. Federal policy is notneeded to achieve major progress: local governments, real estate companies, and utilities
can come together to implement new programs and policies to maximize carbon savings
achievable through retrofits.

16

CASE STUDY
Retrofit Chicago is a voluntary program that encourages and promotes energy efficiency
in buildings. The program includes all building types—from small residential properties(single-family homes and small multifamily buildings) to larger properties such as offices,
hotels, college buildings, large multifamily buildings, nonprofit office space, and houses ofworship. Under Retrofit Chicago, the city is also improving the efficiency of its own buildings
and has reduced energy use by approximately 18% across 60 city-owned properties. The
portion of the program addressing larger buildings has also achieved approximately 18%
energy reduction in 88 participating buildings, spanning over 56 million square feet ofspace.
Building on the success of this program, as well as the city’s mandatory energy
benchmarking requirement—which establishes a common reporting standard on energy
efficiency data—for large properties, Chicago will begin assigning a building energy ratingof between zero and four stars to all properties over 50,000 square feet, starting in 2019.
Property owners will be required to post their ratings in a prominent location and to share itat the time of listing for sale or lease. The new Chicago Energy Rating System is expected toincrease the transparency and simplicity of energy information reported under the Chicago
Energy Benchmarking Ordinance.

17“ While the Trump administration continues to deny
the reality that environmental and economic interests
go hand in hand, America’s Pledge is helping tounite local leaders who believe in clean air, cleanwater, and preserving our natural resources for future
generations. In Chicago, we will continue to invest in
sustainability initiatives that improve our environment,
support 21st century jobs and lead us on the path toeventually powering all of Chicago with 100%
clean energy.”

Rahm Emanuel,Mayor of Chicago

18

04.

ELECTRIFY
BUILDING
ENERGY USE
Americans currently burn large quantities of fossil fuels directly in our homes and commercial
businesses, resulting in over 500 million tons of carbon pollution per year. Shifting toelectricity to provide heating and cooling needs is a powerful opportunity to cut carbon
pollution, particularly when combined with continuing to clean the electricity grid itself.
States, cities, and utilities can collaborate to electrify building energy use by evaluating
local or regional potential from a technical and economic standpoint, setting targets
backed by policies or regulations in relation to new appliance and building standards, andimplementing programs to encourage retrofits, such as through utility, state, or municipal
rebates for electric hot water heaters.

19

CASE STUDYWith mounting evidence that the use of methane (the main component of natural gas) may equalor exceed coal in its climate-damaging impacts, Boulder, Colorado has helped launch a multicity
initiative to rapidly transition buildings off their dependence on natural gas for space and water
heating. A primary strategy is the electrification of existing natural gas uses with high-efficiency heatpumps. A consortium of over 20 cities including Boulder; New York City; San Francisco; Seattle;
Salt Lake City; Palo Alto, California; Burlington, Vermont; Washington, DC; and others has initiated abroad public-private collaboration working with most of the world’s major heat pump manufacturers,
as well as suppliers and installers in the HVAC industry, to develop policy, market infrastructure,and financial mechanisms to facilitate this rapid transition. Boulder has set an ambitious goal totransition over 80% of its residential building stock to high-efficiency heat pumps by 2050.

“ Local action on climate is more important than ever andwe will continue to work with cities throughout Colorado
and the nation to lead on climate. Boulder’s Climate
Commitment goals set greenhouse gas reduction
targets that exceed those outlined in the Paris Climate
Agreement. We will continue on our path to significantly
reduce our city and community emissions.”
Suzanne Jones,
Mayor of
Boulder, Colorado

202016 GHG Emissions(MMT CO2e)

TRANSPORTATION
28% (1805 MMT CO2e)

The transportation sector recently surpassed the power sector as the single largest sourceof U.S. greenhouse gas emissions at 28%, due in part to the retirement of coal-fired
power plants and the rebound of vehicle miles traveled after the Great Recession. There issignificant momentum towards the development of a more fully electrified, and therefore
cleaner, road transport system.
Other strategies to cut emissions from transportation include shifting from continued urban
sprawl to urban densification; expanding public transportation networks, ridesharing, andalternative modes of transportation to reduce vehicle miles traveled; converting frompetroleum-based vehicles to those running on low-carbon fuels such as carbon-beneficial
biofuels or green hydrogen; improving fuel economy of conventional fossil-fuel based
vehicles; and reducing freight emissions through improved efficiency of heavy-duty vehicles,
aircraft, and transportation networks.
About two-thirds of the miles travelled by American drivers are in urban areas,6 where thereis the greatest opportunity for replacement with mass transit, shared fleet vehicles, andthe increasingly important electrification of vehicles. Fortunately, primary decision-making
authority to transform our transportation system rests with nonfederal leaders. Local
and regional governments set land-use policy and fund public transportation systems.
Businesses and non-federal government entities manage large vehicle fleets and havegrown their influence by developing new transportation businesses models. While thefederal government has an important role in setting overall greenhouse gas and efficiency
standards, known as Corporate Average Fuel Economy, or CAFE, standards, states like
California and partnering states can set their own vehicle emissions standards. California has
been joined by twelve states in adopting its strict Clean Car standards, and together they
represent over one-third of the U.S. vehicle market.

6

Brookings Institute, The Road…Less Traveled: An Analysis of Vehicle Miles Traveled Trends in the U.S., 2008.

21

05.

ACCELERATEELECTRIC VEHICLEADOPTION
U.S. Light Duty Electric vehicles (EV) sales are steadily growing, from 50,000 in 2012 to
now over 850,000 sold in the U.S. market. The number of EV models on the market is on
track to double between 2016 and 2020 and is expanding to all vehicle classes and market
segments—light duty trucks, commercial delivery vehicles, transit buses, and even semitrucks. This growth and expanded vehicle availability is impressive, but market penetrationis still tracking well below the rate needed to put a dent in the greenhouse gas emissionsof the U.S. transportation sector. States, cities, corporate fleet owners, utilities, vehicle
manufacturers, transportation network companies and other private sector innovators
have the power to substantially increase the rate of EV deployment, particularly when theywork together. States can set and expand proactive zero emission vehicle (ZEV) policies
and regulations. Cities and corporate fleet owners can collaborate on group procurement
models, expand education and awareness programs, and support coordinated andaccessible charging infrastructure.

22

CASE STUDYIn Los Angeles, Mayor Eric Garcetti pioneered BlueLA, the nation’s first all-electric carshare
program designed to serve low income residents. BlueLA exemplifies a successful publicprivate partnership with a comprehensive community outreach and engagement process.
The program is a unique blend of leveraged funds from California’s Cap-and-Trade program,a local city match, and the backing of a committed carshare operator identified through acompetitive solicitation to the private sector. With stations located throughout some of LA’s
most disadvantaged neighborhoods, members of the local community are employed by
BlueLA to lead on outreach and education. The program is expected to take at least one
thousand vehicles off the road by 2020 while saving Angelenos money and giving them highquality, affordable, and clean mobility options.

“ Here in Los Angeles, sustainability isn’t just an issue
area—it’s a value that guides everything we do.
From building the largest public EV charging network in
the country to offering new greenhouse gas-free mobility
options to Angelenos, we know the climate leadershipwe show today will protect public health, drive
innovation, and grow our economy.”
Eric Garcetti,
Mayor of Los Angeles

232016 GHG Emissions(MMT CO2e)

HYDROFLUOROCARBONS (HFCS)

2% (159 MMT CO2e)

Hydrofluorocarbons are potent climate pollutants used in air conditioners, refrigerators,
aerosol cans, insulating foams, and other products Americans use nearly every day.
While HFCs currently make up only 2% of total U.S. greenhouse gas emissions,molecule-for-molecule they are many thousands of times more potent than carbon dioxide,
and their global use is growing rapidly. Unfortunately, domestic progress has stalled, with the
U.S. Congress yet to ratify the Kigali Agreement, and with portions of the U.S. Environmental
Protection Agency’s authority partially vacated by the courts. This outcome places greater
importance on nonfederal actors to fill the ambition gap and forge ahead on key actions to
cut these harmful pollutants.
Fortunately, U.S. companies like Chemours and Honeywell have taken the global lead indeveloping climate-friendly refrigeration technologies that have enabled the world to phaseout the use of HFC’s. Supermarket chains have stepped forward by participating in EPA’s
GreenChill program to reduce their emissions through actions such as addressing leaks,
upgrading equipment, and switching to refrigerants with lower global warming potentials.
Commitments to reducing their HFC emissions have been made by 43 supermarket chains,representing over 10,000 individual stores, or about 28 percent of all stores in the UnitedStates.7 GreenChill partners have, on average, reduced their leakage rates about 44 percent
compared to a typical supermarket.8 As of March 2018, 215 stores are certified as having
achieved even greater emission reductions.

7

https://www.epa.gov/sites/production/files/2017-09/documents/gc_recognition.presentation_2017_ceremony.pdf

8

https://www.epa.gov/sites/production/files/2017-09/documents/gc_recognition.presentation_2017_ceremony.pdf

24

06.

PHASE OUT
SUPER-POLLUTING
HFCS
While the Kigali Amendment to the Montreal Protocol on phasing down super-polluting
HFCs was negotiated among nations, California’s March 2018 SNAP rule demonstrates theability of states to drive progress themselves. California has set out to reduce HFC emissions
40% by 2030 from 2013 levels in supermarkets and other refrigeration uses. Its recent banon the use of HFCs in certain sectors would prevent 2.7 million tons of CO2-equivalentemissions annually by 2025. These rules can also be expanded to cover additional end-uses,
including aerosols. A group of 16 U.S. states and Puerto Rico, organized under the bannerof the U.S. Climate Alliance, released a statement of its commitment to reducing short-lived
climate pollutants in June 2018. The group could adopt the California SNAP standards
on HFCs. Collaborative campaigns involving states, cities, and supermarket chains canencourage additional commitments across the supermarket industry.

25

CASE STUDY
After a federal court blocked a portion of EPA’s authority to regulate HFCs, the California Air
Resources Board (CARB) was left in a bind because of their reliance on the EPA’s Significant
New Alternatives Program rules to help meet California’s preexisting emission reduction
goals for HRCs, which in turn are important to ensure California ultimately meets its larger
climate goals. “As a result of the recent court decision, California had to pass its own
regulation to ensure it could meet these goals,” CARB said in a statement.

The regulation it promulgated in March of 2018 affects certain stationary refrigeration andfoam end-uses. It preserves emission reductions from specific sectors with past or shortly
upcoming compliance deadlines and will “prevent manufacturers from backsliding or start
using high-global warming HFCs again,” according to the CARB statement. The regulation
applies mainly to equipment manufacturers, which cannot use prohibited HFCs in new
refrigeration equipment or foams.

26

Prohibited HFCs cannot be used in new equipment and materials in California for thefollowing end-uses:•

Supermarkets and remote condensing units used by convenience stores;•

Refrigerated food processing and dispensing equipment, such as Slurpee machines
and frozen yogurt dispensers;•

Stand-alone, or small self-contained refrigeration units;•

Refrigerated vending machines; and•Foams used in buildings and other places.

It also requires that they have a disclosure statement that certifies that products use only
compliant refrigerants or foam expansion agents.

“ Washington may have dropped the ball on curbing
HFCs, but leading states can keep industry on track
to replace these super-potent heat-trapping pollutants
with safer alternatives—benefitting our health andthe climate.”

David Doniger,
Senior Strategic Director of NRDC’s
Climate and Clean Energy Program27

2016 GHG Emissions(MMT CO2e)

OIL & GASMETHANE

4% (258 MMT CO2e)

Methane is the primary component of natural gas, and its uncontrolled release frompipelines and other gas distribution infrastructure has significant climate and safety
implications given its strength as a heat-trapping atmospheric gas 34 times more potent
than CO2. Methane has multiple sources, including livestock, landfills, coal mines, andrice cultivation, but oil and gas production and distribution is the fastest-growing sourceof methane emissions. Emissions from oil, gas, and coal extraction and distribution are
responsible for 4% of overall U.S. greenhouse gas emissions, which equates to over 250
million tons of carbon dioxide equivalent annually.
Methane leaks are a problem both at the wellhead and in gas distribution systems. States
have been working in recent years to establish standards for oil and gas wells to upgrade
equipment and limit fugitive methane leaks. In addition, recent advancements in technology,
led by collaborations between industry, local policymakers, and technology providers, aremaking leak detection cheaper and more effective. And individual oil and gas companies
have stepped forward, demonstrating to the industry as a whole that curbing methane leaks
can be a viable business decision as well as an important safety and climate precaution.

28

07.

STOP METHANELEAKS AT THE
WELLHEAD
Recent scientific studies have shown that methane leaks associated with the exploration,
production, and distribution of oil and especially natural gas are far higher than estimated.
But those studies also show that, because of the value of natural gas recovered, simple leakdetection and repair strategies can cut over 40% of these emissions. California, Colorado,
Wyoming, Pennsylvania, Ohio, and Utah have put in place regulations or permitting
programs to address methane emissions from oil and gas production facilities. There is an
opportunity for other states to follow in their footsteps and drive action on methane now.
In addition to the climate benefits, such states also increase their production of naturalgas, with the royalties and tax revenues that it brings. In support of adopting state-levelstandards, collaborations among nonfederal actors can develop and pilot innovative
approaches to detect and repair leaks at oil and gas exploration and production sites.

29

CASE STUDY
Even while the Trump Administration attempts to repeal federal protections on oil and gas
methane emissions, states are moving forward. Last June, Pennsylvania Governor Tom Wolf
delivered on a key promise, enacting general permit conditions for new well sites and major
emissions sources in the midstream sector. As the second-largest gas producing state in
the nation, this move is critical not only for the tons of pollution it will prevent from escaping
into the atmosphere but also for its value in demonstrating that methane solutions areboth cost-effective and politically feasible. Governor Wolf has also committed to proposing
new rules for existing sources in 2018, protections that are sorely needed to ensure
pollution from the roughly 70,000 wells already operating in the Commonwealth do not
go unaddressed.

“ Governor Wolf has faced some tough opposition, notably
in the state legislature—but he has come through on thisimportant commitment. It’s a testament to his tenacity
and a proof point that, even in a state that depends on
traditional energy industries, voters care about climate.”
Mark Brownstein,
EDF Associate
Vice President

30

08.

REDUCEMETHANE LEAKSIN CITIES
Much of natural gas distribution infrastructure exists underground in large cities and iscontrolled by local utilities supplying natural gas for heating, cooking, and other energy
uses. Detecting and repairing leaks in this vast system can be difficult and costly. But
through the use of innovative technologies, improved partnerships, and advanced analytic
methods, including leak quantification, nonfederal actors can revolutionize the way utilities
repair and abate leaks—driving down the cost of detection and repair while achieving
greater reductions. Working with urban gas distribution utilities in the eight leakiest states,
which account for 85% of leak-prone pipe (California, Michigan, New Jersey, New York,
Ohio, Oklahoma, Pennsylvania, and Texas), cities, utilities, and commercial service providers
can develop and implement plans to use advanced leak detection and data analytics (ALD+)
to identify and abate the largest leaks.9 Because a large fraction of this gas flows from asmall number of very large “super leaks,” local leadership is ensuring that these leaks arerepaired to reap important and immediate nonclimate benefits.

9

PMHSA 2016 Data, America’s Pledge Analysis

31

CASE STUDY
Persistent, non-hazardous leaks are a ubiquitous problem in many urban gas distribution
systems—with leaks often going unaddressed for years because they don’t present animmediate danger to people or property. Using advanced analytics and leak data collected
by Google Street View vehicles outfitted with methane detection sensors, PSE&G—
New Jersey’s largest natural gas utility—was able to identify and prioritize replacementof its highest emitting areas, leading to an 83 percent reduction in methane emissions byreplacing one-third fewer miles of pipe than would have been required using traditional
survey and repair methods.

“ PSE&G, working with EDF and Google, pioneered
the use of advanced leak detection methods by using
methane emissions data to help prioritize our pipe
replacement efforts on the areas most in need. Targeting
and accelerating the replacement of our aging pipes
provides benefits for our customers, the economy andthe environment.”
Jorge L. Cardenas,
PSE&G Vice President,
Asset Management

32

NATURAL LANDS
America’s natural lands play an important role in absorbing and sequestering
carbon while also providing important ecosystem services. Today the land sector
sequesters over 10% of total U.S. greenhouse gas emissions. It is estimated that
the United States could bolster its land-sector sink to sequester an additional
1 gigaton of carbon dioxide (GtCO2) per year—the equivalent of 15% of annual
U.S. greenhouse gas emissions.

33

09.

REGIONAL
STRATEGIESFOR CARBONSEQUESTRATION IN
NATURAL AND
WORKING LANDSStates and businesses, nurtured with support from coalitions of philanthropies and NGOs,
can spark regional initiatives appropriate to the variety of ecosystems that span the North
American continent. If successful, these regional initiatives could become a focal point for
future federal policy, while providing significant benefits for rural economies, agricultural
productivity, water resources, natural habitat, and recreation. Deploying carbon-beneficial
practices across a large majority of U.S. forestlands, croplands, and grazing lands will require
improved data, new monitoring systems, and scalable incentive mechanisms to elevate
deployment from one-off transactions at the farm- or forest-level to efficient landscape-level
programs.

34

CASE STUDYForests present the largest opportunity for carbon sequestration in the North American land
sector, and currently absorb and sequester 10% of total U.S. carbon emissions each year.
Of the 750 million acres of forests in the U.S., over half is privately owned, with 61% ofprivate ownership (265 million acres) in the hands of individuals and families in tracts over 10
acres in size. Unfortunately, the U.S. is slowly losing its forests, and many remaining forests
are in a degraded state due to unsustainable harvesting, forest health issues including fires,and expanding development.
In partnership with a wide range of private landowners, the Nature Conservancy (TNC) ofPennsylvania launched a new program, Working Woodlands, in 2009 to accelerate largescale forest protection and sustainable management by offering a new value proposition
to forest landowners through forest certification and carbon markets. The Pennsylvania
Working Woodlands program targets key landowner segments with a value proposition
that includes forest protection in the form of a working forest easement and agreement,
Forest Stewardship Council (FSC) certification and access to carbon markets. This model canhelp landowners achieve higher performing forests, with better growth rates that produce
higher value wood products. Meanwhile, the forest is able to capture and store more carbon
through improved forest practices. The additional carbon is quantified, verified and sold toorganizations or companies that wish to offset their carbon footprint, and the majority of thebenefits flow to the landowner.

35

To date, in Pennsylvania alone over 62,000 acres have been protected, restoration has been
accelerated on 5,000 acres, and almost 3.5 million tons of carbon will be sequestered overthe life of the projects. Now, the model has been implemented in Tennessee, Michigan, andNew York, with 8 other states in early stages of project development. TNC aims to have
1 million acres in the program by 2025, sequestering an estimated 50 million tons over thelife of the projects.

“ Natural climate solutions offer enormous
potential across each and every state of the U.S.;
sequestering more carbon in our natural andworking lands can also create rural jobs and support
livelihoods, clean our water and air and help halt
biodiversity loss.”

Josh Parrish,
Director, The Nature Conservancy
Working Woodlands Program36

2016 GHG Emissions(MMT CO2e)

ECONOMY-WIDECARBON PRICING
Beyond sector-specific approaches, an economically efficient way to reduce
emissions is to set economy-wide prices on greenhouse gases throughmechanisms such as cap-and-trade, and carbon taxes or fees.
While sector-specific policies will deliver significant emissions reductions, they
inherently fail to cover all sectors of the economy or fail to account for shifts inemissions between sectors. Market-based policies such as cap-and-trade allow
for trading between entities, which helps identify the least-cost mitigation
opportunities.

Total: 6,512 MMT CO2e

37

10.

STATE
COALITIONS FOR
CARBON PRICINGStates can work together to establish legally enforceable economy-wide limits on carbon
pollution, with emission targets consistent with the objectives of the Paris Agreement.
These policies may be implemented through emissions trading or another form of carbon
pricing, and planners should look to existing successful policy frameworks such as
California’s cap-and-trade initiative and the Regional Greenhouse Gas Initiative (RGGI) as
model policies to replicate. Additionally, regions with existing greenhouse gas markets canlink with emerging markets or broaden to cover new sectors. For instance, RGGI only covers
emissions from electric utilities, but some policy makers are looking at opportunities toexpand the protocol to include transportation or establish a cap on transportation emissions
under another program.

38

CASE STUDY
Demonstrating how quickly a state can move forward ambitious executive action, former
Virginia Governor Terry McAuliffe deployed available air pollution control tools and issued
an Executive Directive in May, 2017 requesting the development of a “trading-ready”
regulation to limit carbon pollution from the power sector. After broad stakeholder outreach,a draft regulation was formally proposed to the state’s Air Pollution Control Board in thefall of 2017. Current Governor Northam continued this climate leadership, shepherding
the regulatory process ahead through his first year in office. A final regulation is expected
to be compatible with the successful RGGI program, and completed in time to facilitate
compliance beginning in 2020.

“ Now more than ever, it’s essential that states step
up to the plate to do what they can to control GHG
emissions.”

Michael G. Dowd,
Director, Air & Renewable Energy Division,
Virginia Dept. of Environmental Quality

39

CONCLUSION
The 10 opportunities laid out above can be seized immediately by nonfederal actors using
existing authorities with enormous economic or public health benefits, and do not dependon federal legislation or regulatory authority. While not every business, city, and state in the
country will take every action on this list, the impact of the full range of potential emissions
reductions listed above is far greater than the gap between business-as-usual trends andthe target set by the United States under its Paris Agreement Nationally Determined
Contribution: reducing emissions by at least 26% below 2005 levels by the year 2025.
In September, the America’s Pledge initiative will release the results of an economy-wide
integrated assessment model that analyzes the emissions reduction potential of increased
ambition across these 10 opportunity areas. However, U.S. climate leaders need not
wait for the results of this—or any other—analysis to get started. Indeed, each of the
10 opportunities included here presents immediate economic, health, innovation, andenvironmental benefits that produce win-win outcomes for local communities andbusinesses and for the national economy. America’s low-carbon future is fast approaching,
and the commonsense actions of America’s true climate leaders—its businesses, cities, andstates—are helping to ensure that future arrives as quickly as possible.