Selected category: Global Warming Solutions Act: AB 32

Cutting 50 Percent from California’s Petroleum Consumption can Lower Fuel Prices and Price Volatility While Keeping the Economy Strong

Keep reading for an overview or dig right into a new Environmental Defense Fund (EDF) policy brief on transportation fuel prices and the proposed 50 percent fossil fuel reduction for more details.

rp_Tim-OConnor-Nov-2014-214x300-214x300-214x300.jpgIf you are a movie buff, you might remember Groundhog Day in which Bill Murray’s character had to relive the same day over and over again. Well, if you live in California, you probably feel like the existing gasoline and diesel system is on the same style of hamster wheel (i.e. roller coaster prices, Californians paying more than the rest of the country, and the petroleum industry spending the money you pay at the pump to lobby against any change).

As the 2015 legislative season comes to a close, a new script can be written for the state’s transportation fuel system in the form of SB 350 (De León). This effort would reduce petroleum use by 50 percent and in the process could reduce overall gas prices in California, reduce seasonal and annual volatility, and inject healthy competition into fuel markets that retain and create jobs across the state.

Understanding how SB 350 can help fuel consumers across California is actually pretty simple. Since the vast amount of California’s fuel is sold by a limited number of providers and drivers primarily rely on a single type of specialized fuel (CARB reformulated gasoline) – there is basically no competition in the market or choices available to consumers. Therefore, decisions by fuel providers to fix refineries or upgrade pipelines have impacts that directly affect the price Californians see at the pump, as well as how much profit or loss those same fuel providers experience. With significant profit margins and a massive fuel consumption rate, it’s no wonder the petroleum industry is trying to retain the status quo where they can single handedly inflate gas prices and profits. Read More »

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As the Saying Goes, No News is Good News

rp_KHK-picture-200x300.jpgEvery year at your annual checkup, the doctor measures your blood pressure, listens to your heart, and asks you to take deep breathes while moving around her stethoscope. Through these tests, your doctor is gaining insight into your overall physical health and monitoring for anything unusual. Typically, no news is good news when it comes to this annual physical. The same goes for California’s cap-and-trade carbon market, which has been up and running smoothly for the past two and a half years.

Instead of annual check-ups, California’s cap-and-trade program has quarterly auctions – the results of which tell us a lot about the health of the overall program and the progress the state has made towards its greenhouse gas reduction targets. Consistent and stable results from one auction to the next are a positive indication that the state has a functioning, well-oiled program. In other words, no news is good news.

Last Tuesday, the California Air Resources Board (CARB), in partnership with the environmental ministry of the Canadian Province of Quebec (MDDELCC), held one such quarterly auction for cap-and-trade carbon allowances, during which individuals and companies had the opportunity to bid for a total of approximately 83.9 million allowances. Today, CARB and MDDELCC released the results and they reveal yet another successful sale of allowances to the market. Read More »

Also posted in Cap and trade, Cap-and-trade auction results, Climate| Tagged | Comments are closed

Within Reach: California’s Road to 50 Percent Petroleum Use Reduction Explained in Four Easy Concepts

rp_Tim-OConnor-Nov-2014-214x300-214x300.jpgCutting gas and diesel use in California has been a focus of Sacramento policy makers for years. After all, fuel combustion chokes our state with exhaust, releases a massive amount of global warming pollution, and undermines our economic security. And, at nearly 20 billion gallons of total use per year costing drivers over $50 billion a year – with much of the money flowing directly out of the state – it is no small challenge.

Despite many in-state efforts to cut gas and diesel use over the past decade, population and economic growth have erased many of the fuel use reductions achieved. This year, through dedication by Governor Brown and the legislature to fight climate change and make California stronger, there are promising solutions on the horizon. The solution making the biggest splash is SB 350 (De León) – a bill currently before the legislature – proposing (among other things) a statewide goal of 50 percent petroleum use reduction by the year 2030. With this ambitious goal, California can and will make real progress towards meeting its transportation needs using less oil for the years to come.

Understanding how California can meet a 50 percent petroleum use reduction goal by 2030, and why this goal is good for the state, hinges on four key concepts (explained in more detail here). Read More »

Also posted in Climate, General, Low Carbon Fuel Standard, Natural Gas, Politics, Transportation| Tagged , | Read 3 Responses

Four Powerhouse Bills to Help California get to 50 Percent Renewable Energy

2000px-Seal_of_California.svgCalifornia is deep into the dog days of summer, and pressure is mounting on the state’s electric grid to keep up with demand. Luckily, California’s legislature is working to bring more clean energy resources to the grid, diversifying how we power our homes and businesses while also improving the resiliency, efficiency, and carbon footprint of our energy system.

State lawmakers are directly addressing our dependence on polluting fossil fuels used to produce electricity. They are doing this by increasing California’s reliance on renewable energy, establishing energy efficiency resource standards, and providing certainty that California will meet its renewable energy and climate goals. The state’s current Renewable Portfolio Standard (RPS) has already achieved tremendous success in growing the market for renewables while bringing down associated costs. Building on this success, California’s legislature is currently undertaking four bills that will keep the state on a path to a reliable, affordable, and clean energy future – for the health of its citizens and economy. Read More »

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A Secret Ingredient in the Climate Action Arsenal

Erica Morehouse photoIt’s summer time and many Americans are perfecting their grilling techniques and outdoor recipes. This week, EPA’s final Clean Power Plan rule is giving states a cupboard-full of ingredients to create signature recipes for climate action. The rule signals what the finished product must look like – the nation’s first limit on power plant pollution – but states can pick and choose elements that deliver the right combination of energy bill savings for customers, cleaner air, and clean energy investments. Fortunately, California and nine New England states (known as the Regional Greenhouse Gas Initiative or RGGI) have cooked up successful solutions in the past decade, implementing effective cap-and-trade programs that limit total pollution and demonstrate how strong climate action can stimulate economic growth.

California and RGGI have added a secret ingredient to their climate recipes, a catalyst that can not only drive further pollution reductions but can strengthen communities, create jobs, boost local economies, and improve health. Both programs are reinvesting dollars from the sale of carbon allowances (the currency of cap-and-trade that polluters must hold for every ton of pollution they emit) into further efforts to reduce climate pollution. Read More »

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From Sea to Shining Sea: Cap-and-trade Programs Showing Success on Both Coasts

rp_KHK-picture-200x300.jpgWhen the preliminary plans for California’s cap-and-trade program were first introduced in 2010, it was quickly regarded as a groundbreaking policy due to its stringency, size, and scope. California was the ninth largest economy in the world – it has now jumped to eighth – and the Golden State’s program would soon implement the first economy-wide cap on greenhouse gas pollution in the country. But, it was not the first cap-and-trade program in the United States. In fact, ten states in the northeast had implemented the Regional Greenhouse Gas Initiative (RGGI) in 2008. Like California’s program, the RGGI system places a mandatory cap on greenhouse gas emissions and sets a corresponding price on carbon, but covering only the electricity sector. Despite the difference in scope and location of these two programs, they are both demonstrating that carbon pricing through cap-and-trade is an effective way to decrease harmful greenhouse gas pollution while allowing the economy to grow.

A new report released this past Wednesday by the Acadia Center digs into the most recent data out of the RGGI system. According to the Acadia analysis, the RGGI states have decreased their emissions by 35 percent since the start of the program, while emissions from the 40 states unregulated by a cap only decreased by 12 percent over the same period. At the same time as emissions dropped, the RGGI state economies grew by 21 percent as compared to the non-capped states, which only saw an 18 percent growth in their economies. California has similarly been able to grow its economy impressively while implementing an aggressive cap on emissions. During the first year of the program, the Golden State moved from ninth to eight largest economy in the world, grew its GDP faster than the national average, and decreased capped emissions by four percent. Read More »

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    How California can leverage market-based environmental policies to revitalize its economy, protect its quality of life and retain a leading edge in global innovation.

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