Category Archives: Clean Energy

Over the past 20 years, the unprecedented growth and resiliency of California’s clean and efficient economy has continued throughout economic recessions and budget crises – even while many other sectors of the economy have shrunk.  This growth has created a statewide infrastructure of companies providing the products and services that are at the heart of the transition towards a lower carbon economy envisioned by California’s landmark climate law.

Companies across the California landscape are now ready, willing and able to capitalize on opportunities to increase the efficiency of our state’s buildings, industries and transportation system.  The investments offered under California’s climate law will enable families, businesses and the government to spend less money on energy and fuel, resulting in dramatically reduced pollution. And, as documented in our new report, there is no limit to the benefits these investments can provide.

Invest to Grow tells the story of how investing emissions credit auction proceeds will move California’s clean economy forward, creating jobs and cutting pollution.  Investment opportunities profiled in the report include improvements in buildings and business operations, municipalities, transportation, schools, universities and hospitals.  These opportunities are supported by data drawn from state and federal government programs, industry led initiatives, and EDF’s own Climate Corps program.

By investing emissions credit proceeds in opportunities that decrease greenhouse gases, the state will keep California firms—from LED manufacturers and distributors to energy efficiency retrofitters—in the driver’s seat during the transition to a lower carbon economy.

That’s just another reason why recent misguided and inaccurate reports that California can’t afford to make these investments are so ludicrous. Not only can we afford to invest in California’s clean economy future now – these investments will pay dividends far into the future.

EDF first highlighted California’s coal shadow, which is the impact of coal-produced power sold into the state, in this 2005 report.  At that time, the global warming pollution emanating from these out-of-state smokestacks was equivalent to the emissions from more than 11 million cars, canceling out projected reductions from California’s landmark standards for motor vehicles and its 20% renewable portfolio standard.  

This week, the state Department of Water Resources  (DWR) took a huge step toward ending our coal shadow when it renewed its commitments to stop purchasing power from the Reid Gardner power plant in Nevada starting in 2013.  This critical step, the second major commitment in the past three months that will help California shed its demand for imported coal fired generation, is a strong signal that California global warming policies are working and that a full end of our coal shadow may be in sight. 

In July 1983, DWR entered into a 30 year contract with Reid Gardner to import up to 235 MW from one of the plant’s four units to power part of the State Water Project.  The project is the largest single consumer of electricity in California and pumps water up and down our state for residential, industrial and agricultural operations.  The coal-fired energy from Reid Gardner has accounted for 30-50% of DWR’s annual global warming pollution, while only accounting for 10-15% of the project’s overall energy supply.  This means that Reid Gardner is dirtier and less efficient than California’s other sources of energy. 

The Reid Gardner decision, coupled with the CPUC’s sale of their interest in Four Corners in March 2012, is a clear indication that California continues to stand at the forefront of environmental responsibility and seeks to protect its citizens from harmful pollution and reliance on inefficient energy development.  Our recently-enacted 33% renewable standard, the 2006 emissions performance standard for power plants, and the soon-to-be-launched cap-and-trade program for major polluters are but three of the landmark policies that are driving this fundamental shift toward cleaner sources of energy that will create jobs while improving air quality and protecting public health. 

California continues setting the pace in the clean economy and is reaping tangible economic and environmental benefits from doing so. These are two of the key takeaways from a report released today by Next 10, which found that clean technology is fueling the state’s economic rebound and driving its efforts to cut climate pollution.

The 2012 California Green Innovation Index compiled by Collaborative Economics is the fourth annual report that tracks the “economic impacts of policies that help reduce state carbon emissions.” California’s Global Warming Solutions Act (AB 32) was among the policies cited as helping to drive the state’s economic growth.

According to the report, clean tech investments in California rose 24% between 2010 and 2011 to $3.5 billion. This represents 57% of all the venture capital (VC) funding in the country and 40% in the world. Additionally, California clean tech companies filed the most patents: 910 between 2008 and 2010. New York came in a distant second with companies filing 475.

Our solar industry did exceptionally well, attracting $1.2 billion, 62% of all U.S. VC funding in 2011. In part because of this investment, the Golden State reached a major milestone by installing 1,000 megawatts of solar capacity. Only five other countries in the world have hit this mark. Between January 1995 and January 2010, 1,503 solar businesses were founded here, an increase of 171%.

While this economic news is impressive, equally important were findings related to the environmental benefit: climate pollution fell even as the state's population was rapidly expanding. By 2009, for every dollar of gross domestic product (GDP), California was producing 28% less carbon emissions than it did in 1990. These reductions happened as the population grew by 8 million residents. Specifically, since 1990, California’s per capita GDP expanded 16% while carbon emissions per capita fell. This is particularly encouraging as California prepares to launch a carbon market that will limit overall pollution in the state to 1990 levels by 2020.

This latest report further demonstrates that environmental policies lead to economic growth. We wholeheartedly agree with Doug Henton, CEO of Collaborative Economics, who said that by “setting the market rather than chasing it,” California’s leadership is “paying off in the form of investment, innovation, and growth.”

Today, the California Public Utilities Commission (CPUC) approved the sale of Southern California Edison’s (SCE) partial interest in the Four Corners coal-fired power plant to the Arizona Public Services Company. 

This sale is another indication that California’s landmark climate and energy laws—including: AB 32, which puts a price on carbon; SB 1368, its electricity performance standard; and SB 2, its 33% renewable portfolio standard—are working to encourage state utilities to find ways to move toward cleaner energy sources, cut pollution, protect ratepayers, and maintain reliability.

According to long-term resource plans and investment initiatives, SCE intends to replace the 800 MW of power that was generated near the Four Corners landmark in northwest New Mexico with lower-carbon resources such as natural gas, renewable energy, and energy efficiency – all of which can create in-state jobs and economic activity.  

Once the transaction is final, California will have dedicated contracts from four major coal-fired plants:

1. Navajo (Arizona);
2. Reid Gardner (Nevada);
3. San Juan (New Mexico), and;
4. Intermountain (Utah).

Of course, adherence to the California Environmental Quality Act and other applicable state and federal environmental standards must be observed in connection with investments or authorizations related to the sale of an emissions-generating source.  Such provisions are necessary to ensure that documented emissions reductions are real and achieve the environmental benefits desired. 

When this ownership transfer is complete, SCE’s contribution to California's coal shadow will drop by approximately 5 million tons of CO₂ annually, an amount greater than the largest in-state source of greenhouse gas pollution. (EDF first highlighted California’s coal shadow, which is the impact of coal-produced power sold into the state, in a 2005 report.)

EDF looks forward to working with the CPUC and California utilities as environmental regulations are used to reduce our state’s future coal shadow.

*Legal disclaimer:  Nothing in this post is intended to comment on or provide findings or conclusions related to future or pending evaluations of compliance with federal or state law.

Speeding the development of clean energy in California, Oregon, Washington and British Columbia can generate more than one million jobs and $142 billion in gross domestic product (GDP) by 2020, according to a report released Tuesday.

It is the latest study showing that environmental policies can deliver broad economic benefits across industry sectors and to entire regions.

The report is a forward-looking assessment of how the West Coast mega-region can combine efforts to gain powerful competitive advantages. Among the key findings:

• By 2020, the region’s clean economy could grow by more than 200% through the adoption of strategic policy measures, which represents up to $95.5 billion in new GDP contributions.
• It is critical to put a price on carbon and use market-based approaches to drive innovation and investments that create long-term, sustainable employment.
• The sectors with the highest job growth potential are: energy efficiency and green buildings; environmental protection and resource management; and clean transportation.

The West Coast Clean Economy Report was authored by GLOBE Advisors and The Center for Climate Strategies and released at the GLOBE 2012 Conference in Vancouver, Canada.