This post was co-authored by Jonathan Camuzeaux and Derek Walker.
As we pointed out in August, no news is good news when it comes to California’s cap-and-trade quarterly allowance auctions, which have been running effectively and without hiccups since November 2012. That’s right, last Tuesday’s auction marks the three-year anniversary of the program’s first auction, and the fifth time that California and the Canadian province of Quebec have conducted a joint auction. Time flies by when you settle into a routine, and another set of consistent, stable results indicates once again that California has a strong, well-functioning cap-and-trade program.
Steady results equal a healthy carbon market
Over 75 million current vintage allowances – which covered entities can use for compliance as early as this year – were offered at last Tuesday’s auction, and 100% of these allowances were purchased at a price of $12.73. This price, known as the settlement price, is 63 cents above the floor price set by the California Air Resources Board (CARB) for this auction, and is in line with previous auctions where allowances have cleared at prices slightly above the floor. In the advanced auction for 2018 vintage allowances – which can only be used starting in 2018 – over 10 million allowances were offered and 100% of these were purchased at a price of $12.65. Read More
Last week, it appeared that the Southern California Gas Company was close to containing the flow of natural gas coming from a monster leak at its Aliso Canyon storage field in Northridge, California. Now, four weeks after it started, the leak persists, and data released Friday, from the California Air Resources Board shows that the uncontrolled emissions of methane, the primary component of natural gas, is having significant climate change impacts in addition to affecting public health.
Using data collected from airplanes flying near the leak site, and supported by data gathered from vehicles, satellites and nearby air monitoring platforms, the Air Board’s initial estimates show the rupture at Aliso Canyon has released methane gas with an estimated warming impact over the next 20 years equivalent to carbon dioxide emissions of 2.6 to 2.9 million metric tons. While these estimates are likely to be refined over time and compared to facility estimates of lost gas, conducting aerial methane surveys to calculate emissions rates is a proven scientific measurement method.
These are staggering numbers, even in their preliminary form. Read More
Solar power in California has, in many ways, been an unparalleled success: the state has more solar power installed than the rest of the country combined. There are more solar workers in California (55,000) than working actors or utility workers. Solar workers earn a higher than average wage, and the industry is making strides in employing more women, veterans, and people of color. And, the median income of households installing solar in California in 2012 was between $40,000-$50,000, mostly middle- and working-class homeowners.
But there are two sides to this story because, unfortunately, solar power is still inaccessible to many low-income households.
Take my neighborhood of Boyle Heights, on the east side of Los Angeles, for example: over 70 percent of residents are renters and cannot install solar on roofs they don't own. For those who do own their homes, many can't afford to purchase their own solar system (the median income is just over $33,000) or don’t qualify for traditional financing. Residents here have captured a paltry $0.33 per capita in solar incentives over the past 15 years, as compared to Bel Air (yup, that Bel Air) which received almost $200 in solar incentives per capita – over 600 times more than Boyle Heights. Read More
More than a hundred frightened local residents packed a room at the Porter Ranch Community School for three hours last week, looking for answers about the foul stench caused by a massive natural gas leak nearby. Southern California Gas Company’s Aliso Canyon natural gas storage facility has been leaking vast amounts of noxious gas into the air for two weeks, with still no end in sight.
Environmental health risks abound
The familiar rotten-egg smell of mercaptan – which utilities add to the normally odorless gas – hangs in the air for at least a mile, a pungent reminder of the potential health, safety and environmental risks of the uncontained airborne spill. Natural gas is mostly methane; a powerful pollutant that contributes to smog formation and global climate change, packing 84 times the warming power of carbon dioxide in the first 20 years it is in the atmosphere. Aliso Canyon is the largest natural gas storage site in the Western U.S., operating under intense injection pressures and holding huge amounts of methane. Read More
“When the connection was finally made the Union Pacific and the Central Pacific engineers ran their engines up until their pilots touched. Then the engineers shook hands and had their pictures taken and each broke a bottle of champagne on the pilot of the other's engine and had their picture taken again.”
– Alexander Topence on the scene in Promontory, Utah in 1869 after Western governors drove the “last spike” of the Transcontinental Railroad.
These are good times for clean energy in California. A decade of visionary policymaking, a motivated private sector, and copious sunshine have joined together to reduce the cost of solar in the Golden State by 90 percent.
We already produce more solar energy than any other state. And thanks to a new law Governor Jerry Brown signed last month, SB 350 (De León), California has committed itself to yet another ambitious clean energy goal: 50 percent of electricity in the nation’s most populous state will come from renewables by 2030. Solar is a central part, among others, of California’s strategy to meet this new target.
Amid all this optimism, fast solar growth poses challenges as well. A lot of it has to do with timing. Read More
By: Jonathan Camuzeaux and Tim O’Connor
Many people have been following the AB 32 cap-and-trade program since it kicked off on January 1, 2013. After all, it’s the most comprehensive carbon market in the world; it has created billions in investments for pollution reduction in California communities and garnered intense international attention. Now, based on data showing the program has cut climate pollution during its first compliance period, the chair of the California Air Resources Board (CARB) has dubbed it “officially a success.”
Under California’s Mandatory Greenhouse Gas Reporting program, the largest polluters in the state across all sectors must report their emissions every year. This data is then collected and counted by CARB. Yesterday, the agency released the final tally of the 2014 greenhouse gas (GHG) emissions covered by cap-and-trade, and with data, we get the final word on what happened during the program’s first compliance period (for years 2013 and 2014). Read More