Category Archives: Cap and trade

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.

Source: flickr/Jason Holmberg, Richmond, CA

Wouldn't it be nice to have some say in the matter? Some consumer choice? Unfortunately, most of us drive gas-powered vehicles and don't have any choice when we fill up. Big Oil has us in its grip: we pay what they say. The only way to lower prices in the long run, and reduce our vulnerability to price spikes, is to diversify our fuels and vehicle mix — exactly what new clean fuels policies will do in California.

Low income people and communities of color spend a much higher than averageportion of their monthly income on fuel, and are indeed the most over-burdened by high gas prices and vulnerable to unexpected price spikes. "Cheap gas" however, will not reduce their vulnerability in the long run.

Then there are the social costs of dirty fuels — the ones Big Oil isn't paying but everyone else is. The public health costs of air pollution and climate change. The poor and communities of color are especially prone to these costs, including high rates of lung and heart disease. In California, Latinos and African Americans account for nearly 75 percent of residents in the most polluted ZIP Codes — despite comprising only 44 percent of the state's population. According to the Environmental Protection Agency:

"African American children in California are four times more likely to be hospitalized for asthma compared to white children… African American and Latino children living in urban areas are two to six times more likely to die from asthma than whites."

Case In Point: California's Fight for Clean Fuels

So let's lift the mask off the latest masquerade of compassion: a last-ditch effort now underway by some oil companies and their political allies in Sacramento to derail the most comprehensive clean fuel policies in the country. Ironically, the policies they're attacking — the state's cap-and-trade program (C&T), which will include transportation fuels starting next year, and California's Low Carbon Fuel Standard (LCFS) — are already in place and working. And guess which constituency they are using to cover their political tracks? Spoiler alert: it's vulnerable communities.

The dirty fuels in California's transportation sector are the leading cause of pollution in the state — responsible for nearly 70 percent of smog-forming gases and 40 percent of climate change pollution.

By transitioning the state's transportation system to cleaner fuels, the C&T and LCFS will result in a cumulative public benefit of $23.1 billion by 2025. The C&T and LCFS together are projected to prevent 600 heart attacks, 880 premature deaths, 38,000 asthma attacks, and almost 75,000 lost work days as well as reduce consumption of 21.4 billion gallons of gasoline and 11.8 billion gallons of diesel fuel by 2025, according to a new report by EDF and the American Lung Association.

California is making waves (again) by leading the country with the most comprehensive climate, clean air, and clean fuels policies. By transitioning to cleaner fuels and vehicles, everyone will be less vulnerable to spiking oil prices and dirty air.

By attempting to rain on California's clean parade, Big Oil is using the same dirty tricks they've used for decades, and spinning a false story to try and derail these policies.

It's time these companies stop pretending to be champions for vulnerable communities; their oil-soaked billions and clouds of pollution spewing into low-income communities of color tell the real story.

Instead, maybe they should actually join the race toward a clean, healthy economy. We could use their technological prowess to help us get where we need to go. If they ever did that, then they could claim to be standing up for vulnerable communities — and really mean it.

This post first appeared on Huffington Post 

Also posted in Clean Energy, Climate, Engaging Latinos, Global Warming Solutions Act: AB 32, Jobs, Transportation | Leave a comment

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.

The companies listed on this map span four key sectors: energy efficiency & vehicles, fuels & infrastructure, education & consulting, and investment, showing just how diverse and expansive this industry is in the Golden State. From Electric Vehicles International based in Stockton to A-1 Alternative Fuels Systems based in Fresno, innovation in clean transportation is right in your backyard.

The interactive map allows any state legislator, business person, or interested California citizen to zoom in on their district or neighborhood and identify the clean energy businesses growing in their own communities.

For example, Californians living in the city of Stockton can use this tool to get information about green technology companies that are located right in their backyard, all of which are providing jobs and benefiting the local community. One of these companies is Community Fuels, a company working to make biodiesel a viable and scalable alternative to dirty fossil fuels through rigorous research and quality production. Alternatively, the residents of Foster City can discover that Motiv Power Systems is working to place clean and affordable electric school and shuttle buses on the roads.

Transportation is California’s biggest contributor to climate change and air pollution – the latter of which is a critical health problem for many of our communities. The good news is that this growing green transportation industry is incentivizing cleaner, more efficient transportation and helping to clear the air- a triple win for business, people, and our climate.

While opponents seeking to derail these policies ignore a thriving clean transportation sector built in-part on the expectation that these policies will continue, the Green Roads Map shows Californians why efforts to delay or revise cap and trade and the Low Carbon Fuel Standard undermine the burgeoning economic growth and compromise the health benefits that come along with these policies.

The 300 plus companies on the Green Roads Map are innovating and moving us forward to a clean and more independent energy future.

Check out our new interactive map and if you see a clean transportation company in your neighborhood missing, let us know.

Also posted in Clean Energy, Climate, Global Warming Solutions Act: AB 32, Jobs, Low Carbon Fuel Standard, Transportation | Leave a comment

California’s Cap and Trade a Versatile Tool for Environmental Policies

rp_erica-morehouse-287x377-228x3001.jpgGovernor Brown signed a budget last week that lays out for the first time how to invest the millions from California’s landmark cap-and-trade program ($734 million so far). California has shown another way that cap-and-trade is like the Swiss army knife of environmental policies: a versatile tool known for its usefulness and adaptability.

A Multi-faceted Investment Portfolio

California will invest $850 million over the next year to reduce dangerous climate pollution, a portfolio of investments that will benefit almost every part of California’s economy, going to low-carbon and public transportation, weatherization and energy efficient buildings, water efficiency, waste diversion, and natural resources like urban forests. Substantial investments, at least 25% of the total, will be directed to benefit disadvantaged communities most likely to be impacted first, and worst, by climate change.

Research has shown that the green economy is a solid investment since it already grows faster and is more resilient than traditional economic sectors (the San Joaquin Valley saw a 133% growth in employment in seven “green economy” sectors between 1995 and 2010). The budget also creates long-term guidelines for investing in the green economy as the stream of revenue grows in coming years.

Where the Revenue Comes From

California already limits, or “caps,” total carbon pollution from industries like cement manufacturers and food processors, as well as utility companies. Next year, the cap will expand to include transportation fuels and natural gas providers– two of the biggest polluting sectors in the state. The dollars California is investing are generated by holding these polluters accountable for their impact on the environment. Read More »

Also posted in Auction revenue, Climate, Global Warming Solutions Act: AB 32 | 1 Response, comments now closed

To stay at the head of the class, California must focus on 2030 pollution goal

rp_erica-morehouse-287x377-228x3001.jpgTo be a class valedictorian, you can’t get an A on just one or two tests, or even in just the first quarter of a school year; being at the top means a concerted, continuous effort over the long-term.

For California to continue to be at the ‘head of the class’ on climate leadership, it must move forward on setting climate pollution reduction goals through 2030.

AB 32, the state’s landmark climate law, passed in 2006 and established a statewide emissions goal of reducing climate pollution to 1990 levels by 2020. California is well on the way to meeting that goal through a suite of policies, including cap and trade, which puts an absolute limit on this harmful pollution.

California was ahead of the curve, having passed a law in 2006 to stop unlimited climate pollution in the state. And since 2009 — spurred by AB 32 policies and a guarantee of reductions over a decade into the future — venture capital investments in California’s green sectors have grown by over 30 percent.

State legislators in California did not know what the energy landscape would look like in 2020 when they passed AB 32, but they set a goal and the state’s strong policies have helped to drive the growth of low-carbon energy sources around the country. For example, solar power generation in California has almost doubled in the last year, the cost of solar panel nationwide dropped 75% per watt from 2008-2011, and wind power generation has more than tripled in that time. Read More »

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California and Quebec: Friends in Low (Carbon) Places

KHK pictureA crucial feature of the U.S. EPA’s groundbreaking new Clean Power Plan for existing power plants is the flexibility with which states can pick and choose the emission reduction measures that work best for them. Instead of prescribing a silver bullet solution across all fifty states, the new rule allows each state to tailor its policies, resulting in the most cost-effective solution to climate change.

According to EPA Administrator Gina McCarthy, this flexibility can mean collaborating with others in joint programs: “If states don’t want to go it alone, they can hang out with other states and join up with a multi-state market based program, or make new ones.”

For states thinking about cross-border collaborations to comply with the new rule, they can find a promising example in California.

In an announcement today, the California Air Resources Board (CARB) and the Ministry of Sustainable Development, Environment and the Fight against Climate Change (MDDLECC) of Quebec revealed that the two markets are taking the final step in linking their markets with the initiation of joint auctions. The first will be held in November, following a practice auction to be held in August. The practice auction will allow the program regulators, as well as auction participants, to get comfortable with the updated joint auction platform.

Not only is the Golden State leading the way in transitioning to a low-carbon economy ahead of EPA’s recently-announced power plant standards, but California is forging ahead to show that working across state lines on climate policies is possible – and can be productive. Read More »

Also posted in Cap-and-trade auction, Clean Energy, Linkage | Comments closed

EPA Hands Over the Keys with Clean Power Plan, California Already on Cruise Control

rp_dWalker.jpgEPA’s Clean Power Plan, proposed today, is a roadmap for cutting dangerous pollution from power plants, and as with any map, there are many roads to follow. For this journey, states are in the driver’s seat and can steer themselves in the direction most beneficial to their people and to the state’s economy, as long as they show EPA they are staying on the map and ultimately reaching the final destination.

As usual, California got off to a head start, explored the territory, blazed a lot of new trails, and left a number of clues on how states can transition to a lower carbon future, and California’s successes are one proven, potential model for other states to follow. The state’s legacy of clean energy and energy efficiency progress is a big reason the White House and EPA could roll out the most significant national climate change action in U.S. history.

Way back in the mid-1970s, when Governor Jerry Brown did his first tour of duty, California pioneered what remains one of the most effective tools for cutting pollution and saving money:  energy efficiency. The state’s efficiency standards, largely aimed at buildings and appliances, have saved Californians $74 billion and avoided the construction of more than 30 power plants. All those energy savings have translated into California residential electricity bills that are 25% lower than the national average.  What’s more, California produces twice as much economic output per kilowatt hour of electricity usage as the national average.

While energy efficiency has done yeoman’s work pulling costs down, reducing the need for dirty energy, and supercharging the state’s clean energy economy, California has also brought bold approaches to cleaning up its power supply. The California Renewable Portfolio Standard (RPS) requires 33% of all electricity sold in California to come from renewable sources by 2020, the most aggressive of the 29 states with RPS measures on the books. Read More »

Also posted in Clean Energy, Climate, Energy Efficiency, General, Global Warming Solutions Act: AB 32 | 1 Response, comments now closed

Latest Auction Results Show that California’s Cap-and Trade is in Full Swing

KHK pictureThere are certain key fundamentals of swinging a bat that must be mastered before you can hit a home run; proper posture, a strong stance, and good contact with the ball. The last essential step is the follow-through.

In fact, success in nearly everything relies on putting an idea or solution in motion, and then following through to make sure it achieves the goals that it set out to achieve. The same can be said for building a successful cap-and-trade program.

In 2012-2013, California’s cap-and-trade program celebrated a strong launch, during which companies were able to purchase emissions credits through five quarterly auctions and a well-established secondary market. This stretch brought the start of the first compliance period, the first auctions, and the issuance of the first California Air Resources Board-verified offset credits. In 2014, there may not be as many “firsts,” but executing a strong follow-through is as important as a good launch.

Today, the California Air Resources Board (CARB) published the results of the seventh cap-and-trade auction. All current vintage year allowances offered for sale by CARB were purchased, signaling continued confidence in the program. The complete sale of 2014 allowances also demonstrates that some of California’s worst polluters are paying for their emissions.

Bids for 7.8 million more 2014 vintage allowances were placed than could be filled, signifying a competitive current auction. The price for 2014 vintage allowances, which can be used for compliance from now on, was $11.50, which is 16 cents above the minimum floor price of $11.34. Read More »

Also posted in Cap-and-trade auction, Climate, Global Warming Solutions Act: AB 32 | 3 Responses, comments now 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 »

Also posted in Clean Energy, Global Warming Solutions Act: AB 32, Low Carbon Fuel Standard, Transportation | Comments closed

Five Reasons California Latinos Should Care About Clean Fuels

Jorge-MadridFor the first time since becoming a state in 1850, Latinos are the “new majority” in California, representing the largest ethnic demographic in the country’s most populous state.  While Latinos account for 39 percent of California’s population, they are disproportionately exposed to dangerous air quality, health impacts, and adverse economic risk from dirty fuels.

In fact, the five most polluted cities in America are all in California – and all have majority Latino populations living in them.  The main source of the pollution is the transportation sector, more specifically, the dirty fuels that power California’s transportation sector, responsible for nearly 70 percent of smog-forming gases and 40 percent of the state’s climate change pollution every year.

A new report by EDF and the America Lung Association gives us a stark look at the impact of dirty fuels and offers a path forward to build healthier and stronger communities with cleaner fuels via the state’s Low Carbon Fuel Standard (LCFS) and cap-and-trade (C&T) program.  California Latinos, the population with the highest risk and exposure, should be paying close attention.

Here are five reasons why:

1. We Breathe the Dirtiest Air – Latinos account for nearly two-thirds of California residents in the top 10 percent most polluted ZIP Codes.  This pollution can have serious health impacts on communities; roadway pollution alone causes 9,200 premature deaths per year in the state.  However, the report outlines how the LCFS and C&T will prevent 600 heart attacks and 880 premature deaths by 2025, and provide savings of $8.3 billion in pollution-related health costs.

Read More »

Also posted in Clean Energy, Engaging Latinos, General, Global Warming Solutions Act: AB 32, Transportation | Comments closed

Transportation fuel policies continue to benefit drivers and communities across California

rp_erica-morehouse-287x377-228x300.jpgCalifornia is implementing a suite of innovative transportation policies and there is ample evidence illustrating how drivers and communities across the state will benefit.

One critical piece of research is the First Update to the AB 32 Scoping Plan released by the California Air Resources Board (CARB) yesterday. The Board will vote on whether to approve the updated Plan next week. We've blogged here, here, and here about how the Plan recommends smart 2030 targets, positions California as a continuing leader on climate action, provides enhanced economic opportunity, and recommends new efforts to reduce short lived climate pollutants.

One of the most significant elements is the amount of money drivers will save because of the policies that CARB has so carefully planned for and implemented.  CARB's own analysis shows that existing policies will reduce fuel costs for drivers by over $400 per year by 2020 (from 2012 levels) and by just over $600 by 2030.

 

Source: First Update to the Climate Change Scoping Plan

Source: First Update to the Climate Change Scoping Plan

There is a growing body of work that supports and enhances CARB's finding that Californians will see overall benefits. Read More »

Also posted in Climate, Global Warming Solutions Act: AB 32, Low Carbon Fuel Standard, Transportation | 3 Responses, comments now closed