Author Archives: Tim O'Connor

Another Dishonest Attack on California’s Landmark Climate Law

rp_Tim-Oconnor-picture-228x300.jpgJust over two years ago, the California Manufacturers and Technology Association (CMTA) hired Andrew Chang and Company, LLC, a Sacramento-based economics consulting firm, to produce a report titled “The Fiscal and Economic Impact of the California Global Warming Solutions Act of 2006.”  Though one might hope a report of this nature would deliver honest analytics and academic rigor, EDF economists found it to be an all-out attack on California’s AB32 law, thinly disguised as a credible analysis, and based on a fundamental misunderstanding of basic economic principles, misguided modeling assumptions, faulty calculations, and a willful disregard for the potential benefits of environmental regulation.

Fast forward to September 2014, and now the California Drivers Alliance, an organization organized and funded by a collection of oil producers known as the Western States Petroleum Association (WSPA), has taken a deceitful page out of CMTA’s playbook. This time though, the deceptive report comes from Andrew Chang’s former business partner, Justin L. Adams, now at Encina Advisors. The report – “Placing Fuels Under the Cap: The Economic Impact to California” – again concludes AB32 will be destructive to the economy, while ignoring the wage gains many Californians will receive from higher-paying jobs in California’s emerging clean energy economy.

While there are more holes in this latest report than in a block of Swiss cheese, here are three of the biggest ones: Read More »

Posted in Global Warming Solutions Act: AB 32| 2 Responses, comments now closed

Transportation Diversification is Key to Fixing California’s Gas Price and Pollution Woes

This summer I had the unique opportunity to drive with members of the California state legislature through their districts in Los Angeles and the Central Valley. In addition to brown lawns, hazy air, and intense heat, we were reminded of California’s persistently high gas prices on filling station signs at nearly every major intersection.

Fuel hoses from a gas station. Source: Flickr/Boegh

Fuel hoses from a gas station. Source: Flickr/Boegh

As we drove through many neighborhoods struggling to pull themselves up economically, the need for solutions was clear. Since lower-income households pay the same amount per gallon as people in more affluent neighborhoods, low-income households tend to devote a greater percentage of their monthly income toward fuel purchases. Furthermore, since new and more efficient cars are usually more expensive, low-income households tend to drive older, less efficient vehicles that use more gas and release more pollution. So, while families across California are cutting back on things like watering their lawns, they are forced to spend a lot of these savings filling up their cars, while also breathing some of the most polluted air in the nation.

Fortunately, there is a solution at California’s fingertips that will tackle the issues of gas prices and pollution at the same time: transportation diversification. This simply means providing all Californians with choices on how to get where they need to go. These choices can take the form of alternatives to gas and diesel, alternatives to inefficient vehicles, and alternatives to cars all together. By providing these choices, consumers can pick what works for them – allowing the entire transportation system to better meet people’s unique needs and budgets. Read More »

Posted in Cap and trade, Clean Energy, Climate, Global Warming Solutions Act: AB 32, Low Carbon Fuel Standard, Transportation| 2 Responses, comments now closed

EPA Refinery Standards and California Carbon Limits Can Solve the Puzzle of Refinery Pollution

By Tim O’Connor with Larissa Koehler and Jorge Madrid

EPA recently proposed a final pollution reduction rule for refineries that will help cut toxic air emissions and improve monitoring at the nation’s largest industrial facilities. This new rule is an important complement to the state level carbon and air pollution limits we have in California, and together will make our state cleaner, healthier, and more prosperous.

Source: flickr/Jason Holmberg, Richmond, CA

Any doctor will tell you that to fight the toughest diseases you often need a combination of treatment options. The clean air laws we have in California are an indispensable part of the cure for our air pollution problems. But to be fully effective, they need complementary policies from Washington.

Central to the challenge is the fact that large refineries are all too often found in disadvantaged communities – and release greenhouse gases, carcinogens, neurotoxins, and hazardous metals. Even though our state has been regulating refineries for decades, millions of Californians are still exposed to dirty, dangerous air. The puzzle of how to protect our communities is still missing pieces.

What is needed is direct federal attention to oil refineries. With an EPA standard that is based on the most up-to-date pollution control technology and a new health impact analysis, we can cut pollution and ensure the communities living next to refineries have healthier air and more information about what they're breathing. Read More »

Posted in Clean Energy, Climate| 1 Response, comments now closed

A Major Step to Protect Californians from Gasoline Price Manipulation

Tim O'Connor, EDFYou can’t turn on a TV or radio in California these days without hearing the oil companies and their industry associations complaining that the state can’t afford to move to cleaner fuels and predicting that cutting pollution from the transportation sector will drive up gasoline prices.

What the oil industry’s $56 million political campaign, and even wider reaching ad campaign,  doesn’t say is that if gas prices do go up this year, it is likely to be the oil industry—not clean energy—that’s to blame.

Since 2005, the price of gas in California has fluctuated by an average of $1.16 per gallon, while diesel has fluctuated by $1.01. Year after year, prices at the pump shoot up – yielding significant additional profits for fuel suppliers – then casually drift down back to a point higher than where they started. The phenomenon is so well known, industry insiders call it rockets and feathers.

The oil companies say they don’t cause these fluctuations, but the problem is so severe that Governor Jerry Brown and the state legislature just gave the California Energy Commission $342,000 to investigate and prevent gas price fixing and market manipulation by the industry.

Market domination can lead to price manipulation

Transportation fuel is a concentrated market where a handful of suppliers control a product everyone has to have. Small and large businesses, commuters, soccer moms, motorcycle clubs—pretty much everyone needs the gas and diesel supplied in California by just 22 companies, six of which (Chevron, Tesoro, BP, Phillips 66, Valero and Shell) control 90 percent of the total supply. Read More »

Posted in Cap and trade, Clean Energy, Climate, Global Warming Solutions Act: AB 32, Low Carbon Fuel Standard, Transportation| Comments closed

The United States Supreme Court Hears the Other Side of the Story on California’s Cleaner Fuels Policy

rp_OCONNOR-PHOTO-MAY-20121-200x300.jpgYesterday, the Environmental Defense Fund, the Natural Resources Defense Council, the Sierra Club and the Conservation Law Foundation filed a brief in opposition to March 2014 petitions for Supreme Court review in American Fuel & Petrochemical Manufacturers Association v. Corey and Rocky Mountain Farmers Union v. Corey, cases in which oil and ethanol companies attack the constitutionality of California’s Low Carbon Fuel Standard (LCFS).

The LCFS, adopted under California’s trail blazing Global Warming Solutions Act, is a central contributor in the effort to move the transportation system away from the current paradigm of unsustainable global warming pollution, foreign energy dependence, and community-choking air pollution. The LCFS works by putting market incentives in place that encourage the production and use of low carbon fuels that were not prevalent when the program went into effect.  It is projected to reduce greenhouse gas emissions from California’s use of transportation fuels by 16 million metric tons per year by 2020.

As we have explained in prior posts here and here about this important case, the challengers in the litigation have argued that the LCFS discriminates against ethanol and oil coming from outside of California and that it attempts to regulate actions occurring outside the state in violation of the U.S. Constitution's Dormant Commerce Clause. A panel of the United States Court of Appeals for the Ninth Circuit rejected these arguments in September 2013. In their March 2014 petitions, the industry challengers seek Supreme Court review of the appeals court’s decision. The Supreme Court’s decision on whether to take the case could come as early as late June. Read More »

Posted in Global Warming Solutions Act: AB 32, Litigation, Low Carbon Fuel Standard, Transportation| Comments closed

New Study: California Climate Law Cuts Billions in Health, Pollution Costs

rp_OCONNOR-PHOTO-MAY-20121-200x300.jpgCalifornia drivers don’t have much choice when it comes to what fuel they fill their cars with, or how dirty it is. As recently as five years ago, nearly 97 percent of the energy used for transportation in the Golden State came from gas and diesel – over half of which was made from imported oil.

This basic lack of consumer choice means that California drivers like myself are stuck with a high-priced product that is made from dirty crude and controlled by a few major multinational oil companies.

What’s more, our transportation system has a direct effect on our health – in addition to contributing to climate change and energy insecurity.

And it’s not a pretty picture.

A study just out from the Environmental Defense Fund and the American Lung Association, with modeling by Tetra Tech, finds that the negative impacts of California’s transportation system cost us a staggering $25 billion per year. It also shows that the benefits of policies aimed at supporting the use of cleaner fuels can significantly reduce such costs.

25 million drivers, worst air pollution in the U.S.

I’m probably similar to many other drivers around here. Last year I drove some 15,000 miles, paying about $2,400 for gas – a sizeable portion of my disposable income. This gas is always more expensive in the summer than in winter, and it won’t matter if I fill up my car at the Shell station on the corner or from Chevron at the freeway on-ramp.

My 15,000 miles of driving last year released about 5 tons of greenhouse gas pollution and other air contaminants. When combined with the pollution released from California’s other 25 million drivers, I have, unfortunately, helped give California the nation’s worst air pollution.

Not only is our state home to the top five most polluted cities in the United States, but countless Californians suffer from lung and heart problems, and even risk early death, from pollution-related health impacts cause by transportation. Read More »

Posted in Cap and trade, Clean Energy, Global Warming Solutions Act: AB 32, Low Carbon Fuel Standard, Transportation| Comments closed
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