Midwest Greenhouse Gas Reduction Accord

The Midwest Greenhouse Gas Reduction Accord (MGGRA) is a commitment by the governors of six Midwestern states and the premier of one Canadian province to reduce greenhouse gas (GHG) emissions through a regional cap-and-trade program and other complementary policy measures. The Accord was signed in November 2007 as a part of the Midwestern Governors Association Energy Security and Climate Change Summit.  

The Accord commits participating jurisdictions to establish a GHG reduction program. As part of this program, members of the Accord will set regional GHG emission reduction targets and develop a multi-sector cap-and-trade system and complementary policies to help achieve these targets.  The program’s timeframe for emissions reductions will be consistent with those of states and provinces that have already set their own emissions targets. Member jurisdictions have also committed to participating in a formal GHG emissions registry to ensure compliance. The signatories agree that the cap-and-trade system will also enable linkage to similar programs in other jurisdictions; maximize economic and employment benefits, while minimizing transitional job losses; reduce emissions leakage to non-participating states; allow covered entities to receive credit for past and present actions to reduce GHG emissions; and address any potential interaction or integration with a future federal program. A timeframe for the creation and implementation of the official cap-and-trade program is included in the Accord; the design of the program is due to be completed in 2009.

For more information about the process, visit the Accord website.

 

Timeline

January 2009: Draft recommendations on cap-and-trade program design are released. Read the recommendations here.

September 15-16, 2008: The MGGRA Advisory Group meets and establishes an updated timeline for the completion and implementation of the Accord.

November 27, 2008: Premier McGuinty of the Canadian province of Ontario joins the Accord as an observer.

November 15, 2007: Governors Blagojevich of Illinois, Culver of Iowa, Sebelius of Kansas, Granholm of Michigan, Pawlenty of Minnesota, Doyle of Wisconsin, and Premier Doer of Manitoba sign the Midwestern Greenhouse Gas Reduction Accord. Governors Daniels of Indiana, Strickland of Ohio, and Rounds of South Dakota sign on as observers.

 

Members

Illinois	Gov. Rod Blagojevich (D)
Iowa	Gov. Chester J. Culver (D)
Kansas	Gov. Kathleen Sibelius (D)
Manitoba	Premier Gary Doer
Michigan	Gov. Jennifer Granholm (D)
Minnesota	Gov. Tim Pawlenty (R)
Wisconsin	Gov. Jim Doyle (D)

 

Observers

Indiana	Gov. Mitch Daniels (R)
Ohio	Gov. Ted Strickland (D)
Ontario	Premier Dalton McGuinty
South Dakota	Gov. M Michael Rounds (R)

 

Supporting Statements

•    Statement from Eileen Claussen, Pew Center on Global Climate Change

 

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Energy Security and Climate Stewardship Platform for the Midwest

In November 2007, the governors of 11 Midwestern states and the premier of one Canadian province individually adopted all or portions of an Energy Security and Climate Stewardship Platform. The state of Missouri later adopted portions of the agreement as well.

The Platform sets a regional goal to “maximize the energy resources and economic advantages and opportunities of Midwestern states while reducing emissions of atmospheric carbon dioxide (CO2) and other greenhouse gases.” To achieve this goal, the Platform focuses on four main policy areas, with measureable goals and objectives for each:

•    Efficiency: As a region, participating jurisdictions will meet at least 2 percent of regional annual retail sales of natural gas and electricity through energy efficiency improvements by 2015, and continue to achieve an additional 2 percent in efficiency improvements every year thereafter.

•     Bio-based Products and Transportation: This component of the Platform includes a series of goals to increase the use of cellulosic ethanol and other low-carbon transportation fuels produced in the region, with a long- term goal that at least 50 percent of all transportation energy consumed in the region in 2025 be supplied by regionally produced biofuels and other low-carbon advanced transportation fuels.

•    Renewable Electricity: Participating jurisdictions agree to several intermediate goals that culminate in an ultimate target of producing 30 percent of all electricity consumed in the region from renewable resources by 2030.

•    Advanced coal with CCS:  This section of the platform includes a series of goals to implement carbon capture and storage (CCS). Members agree to have in place a regional regulatory framework for CCS by 2010 and, by 2012, to have sited and permitted a multi-jurisdiction CO2 transport pipeline and to have in operation at least one commercial-scale coal-powered integrated gasification combined cycle (IGCC) power plant with CCS, with additional plants to follow in succeeding years. By 2020, all new coal plants in the region will capture and store CO2 emissions, and by 2050, all coal plants should have transitioned to CCS.

Numerous policy options are described for states to consider as they work towards these goals.

 

The Platform also outlines six cooperative regional agreements to complement these goals. These resolutions establish the following initiatives:

1.    CO2 Management Infrastructure Partnership: to facilitate a system for capturing and sequestering CO2 emissions;

2.    Midwestern Bio-based Product Procurement Program: to focus on the use of bio-based products as energy sourcesto replace products made with fossil fuel inputs;

3.    Regional Electricity Transmission Adequacy Initiative: to expand and improve regional electricity transmission capacity and to facilitate the expansion of renewable electricity generation;

4.    Renewable fuels corridors and common signage: to coordinate the growth in use and production of regionally-based biofuels;

5.    Advanced bioenergy permitting collaborative: to facilitate the regulatory review and permitting process for bioenergy projects; and

6.    Low-carbon energy transmission infrastructure: to coordinate the development of low-carbon energy resources and the infrastructure needed for deployment of those resources.

 

Members

States adopting all or part of the Platform include: 

Illinois	Gov. Rod Blagojevich (D)
Indiana	Gov. Mitch Daniels (R)
Iowa	Gov. Chester J. Culver (D)
Kansas	Gov. Kathleen Sibelius (D)
Manitoba	Premier Gary Doer
Michigan	Gov. Jennifer Granholm (D)
Minnesota	Gov. Tim Pawlenty (R)
Missouri	Gov. Matt Blunt (R)
Nebraska	Gov. Dave Heineman (R)
North Dakota	Gov. John Hoeven (R)
Ohio	Gov. Ted Strickland (D)
South Dakota	Gov. M Michael Rounds (R)
Wisconsin	Gov. Jim Doyle (D)

 

Find out what's being done in other states to combat climate change.