Midwest creates GHG monitoring and trading scheme, though some details are still being developed

As noted in prior posts, California, some western States, and several Canadian provinces have created a GHG trading program; similarly, a number of northeastern States have created a GHG trading program, and begun the bidding process for allowances. Now, a regional climate accord has been put together by Illinois, Iowa, Kansas, Michigan, Minnesota, Wisconsin, and the Canadian province of Manitoba (Midwestern Greenhouse Gas Reduction Accord). Indiana, Ohio, South Dakota, and the Canadian province of Ontario are "observers". The Accord has two aspects; one is to monitor for the emission of GHGs, and the second is to establish a trading scheme (perhaps; see below). Monitoring. Currently being considered is a requirement that any power plant within the member entities with a generating capacity of 25 MW or greater would have to report annual emissions. For other facilities, those producing 10 thousand metric tons of CO2 or equivalent GHGs would also be required to report annually. Only direct, stationary combustion and process emission sources would be covered by the requirement. The monitoring and reporting is to begin 1 year before regional emissions caps are put in place. Thus, if the current plan target for caps of 2012 is met, then the monitoring and reporting will start in 2011. Caps & Trading Scheme. Although the Accord, as signed in 2007, calls for a trading scheme, it is apparently not yet settled that a trading scheme will be implemented. Consideration is still being given whether to auction emissions allowances (as, for example, the northeastern States are now doing), give them to companies, or use some combination of the two. The program target is to reduce the level of emissions in 2005 by 15-25% by 2020, and by 60% by 2050. An advisory group is working on a model rule that the members can use as a blueprint for the laws and policies that each will have to approve to execute on this plan. A draft of the model was originally targeted for review in November, 2008; the advisory group now plans to release the draft by mid-2009. Information on the program can be found at http://www.midwesternaccord.org/. The Accord can be found at http://www.midwesternaccord.org/midwesterngreenhousegasreductionaccord.pdf.