Category Archives: Global Warming Solutions Act: AB 32

Results Stay Steady in California’s Last Solo Auction Despite Calls for Fuels Delay

KHK pictureFor many people across the country, August is the last opportunity to enjoy the final bits of summer relaxation before fall sets in and the weather turns colder. While many people are away on vacation, the California Air Resources Board (CARB) and Ministry of Sustainable Development, Environment and the Fight against Climate Change (MDDELCC) of Quebec have been hard at work.

During the first week of this month, the two regulatory bodies held a practice joint auction for interested stakeholders to prepare for California and Quebec to officially join their quarterly auctions in November. A week and a half later, this past Monday, CARB held a California-only auction, the results of which were released today. Next week, MDDLECC will hold a Quebec-only auction, and finish out a very busy month for these linked cap-and-trade programs.

Amidst this flurry of activity, the results of California’s eighth quarterly auction, released today, show that the carbon market remains steady and strong. For the eighth time in a row, all current 2014 vintage allowances offered for sale were purchased. Current allowances sold at the same price as the last auction, $11.50, and 3.15 million more bids were placed than could be filled, reflecting healthy competition for credits. More 2014 vintage allowances were offered in this auction than in both of the previous auctions this year. This uptick in volume was due to the fact that a greater number of utility-owned allowances were turned over to CARB to be sold in this auction as compared to the previous two. 71 entities registered for this auction, which is similar to registration in previous auctions. This implies that there is sustained interest in the market and suggests that covered entities are actively planning how they will comply with the regulation. Read More »

Also posted in Auction revenue, Cap and trade, Cap-and-trade auction results, General, Linkage, Transportation| 1 Response

From Stalk to Stover: Edeniq is Innovating to Provide New Fuel for Your Gas Tank

rp_ca_innov_series_icon_283x204.jpgEDFs Innovators Series profiles companies and people across California with bold solutions to reduce carbon pollution and help the state meet the goals of AB 32. Each addition to the series will profile a different solution, focused on the development of new technologies and ideas.

The vast majority of Californians put ethanol in their car – it makes up about ten percent of every gallon we buy at the local filling station (not including diesel). This means that every year, drivers in the Golden State use about 1.5 billion gallons of this alternative fuel. Such widespread use of this fuel begs the question: What is ethanol’s environmental profile, and is everything being done to produce it as efficiently as possible?

Over the years, a great deal of effort has gone into answering the first part of the question, and the answer is: it depends on many factors. Water use, land use, and fertilizer use are all factors associated with growing ethanol feedstocks (typically corn) that can influence whether the fuel is an environmental winner. Aquifer depletion, unsustainable land clearing, and fertilizer run-off are just a few of the potential problems that can emerge when ethanol production is performed in a short-sighted manner. Similarly, feedstock type, biorefinery efficiency, and ethanol yield per ton also matter and can impact whether ethanol helps from a climate change standpoint. Cumulatively, each of these factors can influence the environmental profile of California’s third-most widely used fuel. Read More »

Also posted in California Innovators Series, Cap and trade, Climate, Low Carbon Fuel Standard| Leave a comment

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 »

Also posted in Cap and trade, Clean Energy, Climate, Low Carbon Fuel Standard, Transportation| 2 Responses

Practice Makes Perfect for California and Quebec Joint Auctions

KHK pictureOver many decades, the United States and Canada have developed what is now the largest trade relationship in the world. This achievement is measured by the goods and money that cross their shared border, and does not even account for the trade of ideas and exchange of information currently underway between the two countries. The linkage of the California and Quebec carbon markets is yet another demonstration of the mutually beneficial relationship that these neighboring countries have cultivated. The two jurisdictions are taking the final steps in what started off as a virtual marketplace of ideas and best practices and has since grown into a real market for tradable carbon credits.

Last Thursday, the California Air Resources Board (CARB) and Ministry of Sustainable Development, Environment and the Fight against Climate Change (MDDELCC) of Quebec held a practice joint auction for the linked California and Quebec cap-and-trade programs. This trial was run as though it were a real quarterly auction, requiring participants to establish a Compliance Instrument TrackingSystem Service (CITSS) account if they did not already have one, submit an application to participate, and await approval from the auction administrator. CARB and MDDLECC published an auction notice and ran webinars for auction participants in the days leading up to the practice auction. The auction administrator and independent market monitor for both jurisdictions also monitored the auction while the bidding window was open and the appropriate help desks were available to take questions, just as they would have for a real auction. As such, interested parties were able to become familiar with the actual processes and materials required to participate, as well as test out and provide feedback on the updated features of the auction platform, which was refined to support bidding from both jurisdictions. The careful completion of this important exercise demonstrates CARB and MDDELCC’s dedication to thoroughness in their implementation of the cap-and-trade regulation. Read More »

Also posted in Cap and trade, General, Litigation| 1 Response, comments now closed

New Report Doesn’t CARE about Getting the Facts Right

With billions of dollars in profits, oil companies can pay a lot of consultants to write a lot of really impressive-looking reports.  But look past the fancy cover page and you will often find these documents are nothing more than spin. Case in point: the recent report from Californians for Affordable and Reliable Energy (CARE) and the Valley Industry and Commerce Association (VICA).

For those looking for the real facts about California’s world-leading climate change law, let us correct the record:

1.       Californians spend LESS on energy than people in 45 states.

 The CARE report uses the usual scare tactics about the price of energy. But the truth is that on average, Californians spend less on their energy bills than residents of 45 other states (see graph below) and almost $60 less than the national average per month. This is due to in-large-part to California’s energy efficiency measures, which have led Californians to use almost 45% less electricity per capita than the U.S. average.

Californians spends less on energy than residents of 45 other states. Source: U.S. Energy Information Administration (EIA)

Californians spends less on energy than residents of 45 other states. Source: U.S. Energy Information Administration (EIA)

 2.       California’s climate law will yield significant environmental AND economic benefits for its citizens.

Not only are the costs of AB 32 policies much smaller than the VICA/CARE report would lead you to believe, California’s climate policies actually yield significant economic and health benefits. Read More »

Also posted in Cap and trade, Clean Energy, Climate, Jobs, Transportation| 1 Response, comments now closed

California Cements Latest Climate Alliance, this Time with Next-Door Neighbor Mexico

It’s been an invigorating few days for anyone looking for meaningful action to combat climate change, and especially for those following California’s global leadership in those efforts.

As a delegate to Governor Jerry Brown’s Trade and Investment Mission to Mexico, I witnessed first-hand California and Mexico sign a Memorandum of Understanding and formally agree to work together on a range of actions to address climate change.

The agreement between Governor Brown and representatives of Mexico’s Ministry of Environment and Natural Resources (SEMARNAT) and Mexico’s National Forestry Commission lays out areas where California and Mexico agree to cooperate and coordinate efforts on addressing climate change, including:

  • Pricing carbon pollution
  • Increasing renewable energy use and development
  • Addressing short-term climate pollutants
  • Cleaning up the transportation sector
  • Reducing emissions from deforestation and forest degradation

A Joint Vision for Low-Carbon Prosperity

It makes perfect sense that Mexico is California’s latest climate change and clean energy ally. After all, the relationship between the two jurisdictions runs deep.  Mexico is California’s largest trading partner, and our cultures and economic interests have undoubtedly been entwined throughout history. Both have much at stake with climate change, and this latest collaboration embraces a shared environmental vision which recognizes that a low-carbon future goes hand-in-hand with economic prosperity. Read More »

Also posted in Cap and trade, Clean Energy, Climate, Energy Efficiency, Linkage, Low Carbon Fuel Standard| Comments closed

How Big Data Can Fight Climate Change in Los Angeles

Jorge-MadridYou may be wondering – as I was before we started a project with the UCLA Luskin Center for Innovation over a year ago – “what the heck does Big Data have to do with climate change?”

To start, here’s a piece from Climate Central that exemplifies the new power of big data.

“Big Data allows you to say simple, clear things…to tell people about their climate locally in ways they can understand.”

Through taking information created all around us and applying thoughtful analysis, we can comprehend and unleash it to solve our greatest challenges. For EDF, that means partnering with the country’s top universities and most innovative companies to address the biggest challenge of our time – climate change.

Today we launch the newest version of the Los Angeles Solar & Efficiency Report (LASER), a data-driven mapping tool that can help stakeholders and local leaders understand climate and pollution risks in their own communities. Empowered by this information, they can seek out and maximize available resources to deploy clean energy, reduce climate pollution, and create tens of thousands of much-needed jobs. Read More »

Also posted in Cap and trade, Clean Energy, Climate, Engaging Latinos, Jobs| 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 »

Also posted in Cap and trade, Clean Energy, Climate, Low Carbon Fuel Standard, Transportation| Comments closed

Does Big Oil Really Care About Vulnerable Communities?

Jorge-MadridThere they go again… with the same lament we always seem to hear from Big Oil lobbyists when it's time to protect public health:

Don't put environmental protections on fuels, because that "will hit low-income and middle-income families the hardest." In other words, if you make us clean up our act, then we'll be forced to raise gas prices, which hurts vulnerable people… You don't want to hurt them, do you?

Hmmm. Do oil companies really care about vulnerable populations like low income people and communities of color? Could it be that they are using these families as a smokescreen for killing environmental protections and protecting their profits? Let's look at the facts and see if we can cut through some of this smoke.

Oil companies are among the most profitable enterprises in the world — last year the "big five" made $93 billion in profits, or $177,000 per minute. Even in my home state of California, which is at the forefront of environmental protections, Chevron is still the largest company by revenue (take that Apple and Facebook!). Many polluters have been claiming for decades that clean air standards will "cause entire industries to collapse," but those dire predictions have never come true. The idea that we have to choose between environmental protection and economic growth has always been a false choice.

Who is really to blame for high gas prices — and who stands to profit from that sick feeling you get when you're fueling your car and the price shoots past $40… $50… $60? Turns out an average vehicle uses $22,000 in gas over its lifetime, $15,000 of which (68 percent) goes right to oil companies. Further, an additional 25 cents in the price per gallon of gas at the pump every three months equals an additional $5 billionin profits for the big five oil companies. Read More »

Also posted in Cap and trade, Clean Energy, Climate, Engaging Latinos, Jobs, Transportation| Comments closed

Mapping the California Companies Fueling a Cleaner Future

green roads mapClean energy and clean tech sound exciting, but most people don’t see these businesses as a major part of our economy, especially when traditional fossil fuels rule at the pump.

But thanks to policies like California’s Low Carbon Fuel Standard and cap and trade, more and more businesses are giving us options when we need to get from point A to point B, and they form an increasingly important source of economic growth in the state.  From cars running on used vegetable oil (biodiesel) to cars you can plug into your house, new and exciting innovations are fast coming to market.

The new interactive Green Roads Map that EDF created in partnership with CALSTART, Environmental Entrepreneurs (E2), and the Natural Resources Defense Council, shows that we have many emerging options for our cars and transportation fleets, and that clean transportation is a flourishing industry in California.

The Green Roads Map is more than just a collection of dots- the map presents an important picture of the investors, researchers, producers, and salespeople who are transforming our economy and transportation system today. Read More »

Also posted in Cap and trade, Clean Energy, Climate, Jobs, Low Carbon Fuel Standard, Transportation| Comments closed