Category Archives: Low Carbon Fuel Standard

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 Cap and trade, Clean Energy, Climate, Global Warming Solutions Act: AB 32, Jobs, Transportation | Leave a comment

Supreme Court’s Low Carbon Fuel Standard decision: a victory for energy independence

By Erica Morehouse and Larissa Koehler

On this 4th of July week, a time of celebratory fireworks and barbeques, Americans commemorate our country’s hard-fought independence from colonial oppression. Americans are again working for greater independence, this time from fossil fuels that threaten our health, economic prosperity, and future. This week California won a pivotal legal challenge on this front.

Source: Flickr/johnkay

Source: Flickr/johnkay

Just three days ago, the U.S. Supreme Court refused to review a 9th Circuit Court of Appeals decision upholding California’s Low Carbon Fuel Standard (LCFS). The Rocky Mountain Farmer’s Union and the American Fuel and Petrochemical Manufacturers were seeking to overturn the sound and well-reasoned decision from the 9th Circuit. The High Court’s refusal affirms the legality of a vital policy that decreases our reliance on foreign oil by promoting alternative sources of energy while reducing climate and air pollution from our vehicles.

Read More »

Also posted in Clean Energy, Climate, Global Warming Solutions Act: AB 32, Litigation | 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 »

Also posted in Global Warming Solutions Act: AB 32, Litigation, 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 »

Also posted in Cap and trade, Clean Energy, 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 Cap and trade, Climate, Global Warming Solutions Act: AB 32, Transportation | 3 Responses, comments now closed

13 for 13: The Stories that Defined California Environmental Leadership

There is never a dull moment on the California environmental policy scene, and 2013 was particularly action-packed.  Everywhere you turn there seems to be a new innovative solution or a fresh example of a company, city, organization, or individual making a profound difference in putting the Golden State on the path to a clean energy future.  Environmental Defense Fund (EDF) has the privilege of being in the middle of many of these groundbreaking developments, and in the past 12 months, California has taken a number of exciting steps forward.

What follows is our “13 for (20)13” recap of the most consequential stories in the California climate change and energy policy world, in our own words.  From celebrating the one-year anniversary of a successful carbon market to forging partnerships with other states and countries to marking continued innovations and opportunities in clean energy and fuels, it has been quite a year.  Here’s to an even better 2014.

 

1. California’s Carbon Market Caps off Successful First Year of Auctions:

The results of California's fifth carbon auction were released today, marking an important environmental milestone for the state – one year since the debut of its cap-and-trade system.

2. California’s LCFS Ruling is a Win for Consumers and Alternative Fuels Companies:

Last week, we saw a big win for California's Low Carbon Fuel Standard (LCFS) – a regulation to diversify the state’s fuel mix with lower carbon sources of energy.  After almost a year of deliberation, the United States 9th Circuit Court of Appeals filed a decision in the case Rocky Mountain Farmers Union, et al. v. Corey, in favor of California.

3. LASER: Turning the climate threat into a story of opportunity for Los Angeles:

I’m an L.A. guy, so I like to think about things in epic story lines. And with today's launch of EDF and UCLA’s Luskin Center for Innovation new "LASER" maps (Los Angeles Solar & Efficiency Report), I think we’ve got a real blockbuster on our hands.

4. A Blueprint for Advancing California’s Strong Leadership on Global Climate Change:

A key reason California has become a global leader on climate change is its ability to successfully adopt the Global Warming Solutions Act, the state’s climate law that uses market-based tools to significantly reduce the state’s greenhouse gas emission levels. A group of tropical forest experts has now presented a blueprint for how California can secure significantly more reductions in global warming pollution than the law requires, while keeping pollution control costs down and helping stop the catastrophe of tropical deforestation.

5. Scoping Plan 2.0: Taking Action Today for a Clean Energy Future:

Today, the California Air Resources Board (CARB) released its draft 2013 Scoping Plan, the blueprint outlining how the State will address climate change over the next five years, reach its goal of reducing greenhouse gas emissions to 1990 levels by 2020, and create a path for even deeper reductions beyond 2020.

6. Seeing Green: Emission Reducing Fuel Policies Help Lower Gas Prices:

Californians struggling with high gas prices should feel optimistic about the future.  A new memo [PDF] by economists from EDF and Chuck Mason, a prominent economist at the University of Wyoming, demonstrates that policies established to reduce emissions and help the state reach its climate change goals also help to arm consumers at the pump

7. At a Key Moment for Energy, California Should Seize Demand Response:

Traditionally, if an area’s population grows — or it loses a power plant — it needs more energy. But California and some other states can approach it differently and reduce the use of fossil fuels. Instead of asking, How can we add more energy?” the real question becomes “How can we reduce demand?”

8. Offset Market Alive and Well in California:

Congratulations to the California Air Resources Board (CARB) as they announced plans to issue the first CARB Offset Credits or ARBOCs.  These 600,000 metric tons of offsets helps the state move closer towards our emissions reductions goals.  Compliance entities, such as utility and oil and gas companies, can use these offsets to meet up to 8% of their compliance obligation

9. Environment: California didn't do so badly this year:

Despite some particularly unexplainable losses if you care about protecting the environment, the California Legislature made progress in 2013. The range of bills on the governor's desk awaiting his signature confirms that California remains the stalwart energy and climate leader in the country.

10. Historic Agreement Demonstrates Broad Commitment to Build Clean Energy Economy:

With the stroke of a pen, North American efforts to combat climate change and promote clean energy reached a new level today.

11. Hopeful signs for U.S. and Chinese Cooperation on Climate Change:

The past week has offered a thrilling glimpse into the future for the millions of people around the U.S. and across the world who are yearning for real solutions to climate change.  On June 18, Shenzhen, an economically-vibrant city of 15 million on the South China Sea, launched the first of seven Chinese regional pilot carbon market systems slated to begin by the end of 2014.

12. Major California Refineries Logging Big Pollution Reductions Under AB 32:

It is well-documented that petroleum refineries release large amount of pollutants that are harmful to the environment and make people sick.  In California, these refineries are among the largest sources of carbon dioxide, accounting for 7 of the top 10 sources for climate pollution. According to data from the U.S. Environmental Protection Agency, refineries can also emit large amount of toxic compounds, including carcinogens and respiratory irritants.

13. Ruling gives bright green light for investment in pollution reduction projects in California:

California’s landmark clean energy bill AB 32 received a big boost today from the San Francisco California Superior Court in the case Citizen’s Climate Lobby et. al., v. California Air Resources Board.

Also posted in Cap and trade, Clean Energy, Energy Efficiency, Engaging Latinos, Global Warming Solutions Act: AB 32, Linkage, Offsets | 1 Response, comments now closed

From the Pacific Coast Climate Plan, a Path Forward for the Low Carbon Fuel Standard

While several stories have been written on this week’s historic climate pact signed by California, Oregon, Washington and British Columbia, little has been mentioned about the path its created for low carbon fuels in Western North America.  Such a clear statement on the direction for West Coast low carbon fuels development has never been made, so it certainly deserves a deeper dive.

In Part II of the pact: “Transition the West Coast to clean modes of transportation and reduce the large share of greenhouse gas emissions from this sector” the leaders agreed to “Adopt and maintain low-carbon fuel standards in each jurisdiction. Oregon and Washington will adopt low-carbon fuels standards, and California and British Columbia will maintain their existing standards.”

The relevance of this statement cannot be understated.

According to the US Energy Information Agency, the 3 western states burn a combined 23.7 billion gallons of gas and diesel every year, emitting just over 200 million metric tons of carbon dioxide.  British Columbia, for its part, releases about 15.5 million tons from burning gas and diesel in cars and trucks every year.

Furthermore, based on recent projections of alternative fuel industry growth from the California energy commission, the US Energy Information Agency, and consulting firms like Navigant, stringent Low Carbon Fuel Standards (LCFS) are achievable.

For example, according to recent cutting-edge research on electric vehicle (EV) sales, California and Washington will likely lead the nation in EV sales by the year 2022 with about 813,000 and 105,000 EV’s sold respectively.  Additionally, the state of Oregon is expected to account for over 5% of all EV sales in 2022.  With policies like the LCFS, these vehicles can capitalize on the huge amount of zero carbon power (hydroelectric, wind, etc.) produced throughout the pacific northwest on a yearly basis – yielding even greater economic investments while also significantly reducing pollution that causes climate change and public health impacts.

In addition to the EV example, a set of LCFS standards across the western region can build upon the large amount of low carbon biofuels that are being produced.   By way of example, according to the US EIA, at least 14 different biodiesel production facilities with a production capacity of 183 million gallons of fuel are already located in California, Oregon and Washington, with more to come.  Furthermore, as documented by the California Energy Commissions, at least a 3-fold increase in alternative fuels production is expected by 2020, enabling the achievement of goals for “petroleum displacement, in‐stage biofuel production, and LCFS compliance.”

These alternative fuel facilities and companies mean local jobs, economic growth and reduced imports – a much different picture than the current trend of buying massive amounts of foreign crude oil and sending billions of dollars abroad.

For years, members of the oil and traditional ethanol industries have fought to undermine the LCFS in the media, the courts and at the ballot box. These groups have spared no expense to build implementation road blocks and cast doubt over the standard, hiring consulting firms that deliver highly criticized sky-is-falling cost estimates, sponsoring industry groups aimed at casting doubt over implementation readiness, and suing California in state and federal court.  With this most recent announcement, those efforts were again proven futile.

Though time will tell how Oregon and Washington will implement the LCFS portion of the recent climate pact, for now, a green light means it’s go time for low carbon fuels across the region.

Also posted in Clean Energy, Climate | Comments closed

New Report Confirms Major Progress in California's Alternative Fuels Market

After months of surveys, analysis and preparation, the California Energy Commission’s draft 2013 Integrated Energy Policy Report (IEPR) is out – and it shows that dramatic progress is underway in the state’s transportation fuels market.  Not only has the state made measured progress towards a more diversified fuel market through targeted investments, the growth of alternative fuels shows that policies like the Low Carbon Fuel Standard (LCFS) are working and compliance is achievable.

Accounting for nearly 40 percent of total energy consumed in the state and 38 percent of the state’s greenhouse gas emissions, the transportation sector is almost universally recognized as an area where significant progress needs to be made.  As shown by the IEPR, California’s powerful response to this realization through policies like the LCFS, AB 118 investment program and AB 1493 Pavley clean vehicle standards, just to name a few, has led to significant strides in greening transportation and reducing fossil fuel use.  Notable milestones to date recognized in the IEPR include:

  • A marked increase in the use of alternative fuel sources.

A rise in the use of natural gas, biofuels, and electricity has enabled lower-carbon energy sources to rise from a barely detectable level a few years ago, to about 7 percent of total transportation fuel use today.  (Page 19)

  • Expanded funding for clean fuels and energy efficient technologies.

The Energy Commission has contributed more than $400 million across 233 projects related to alternative transportation fuels manufacturing, research and development and workforce training.  With matching private and other public sector contributions of nearly $740 million, state-led investments have resulted in a multiplicative effect (about $1.80 from private and additional public sector funding for each $1.00 invested by the Energy Commission) and significant progress towards the state’s energy and climate goals. (Page 176)

  • Substantial progress and growth in the California biodiesel industry.

The biodiesel industry has grown exponentially in the past few years, resulting in significant production of in-state volumes.  In addition, research currently underway could significantly reduce production costs – meaning even greater volumes in the near future. (Page 64) Growth and technological advancement in this sector are particularly important, given the disproportionate amount of greenhouse gas and toxic diesel particulates that come from traditional diesel trucks.

  • Dramatic improvement in vehicle efficiency.

California’s vehicle standards, which have been emulated by the federal government, have resulted in fleet wide improvements in passenger vehicle efficiency.  As a result, California is predicted to experience a 2 billion gallon decline in gasoline consumption from 14.6 billion gallons per year in 2012 to 12.7 billion gallons per year by 2022. At approximately $3 dollars per gallon of gasoline, that’s over $6 billion per year in savings for consumers. (Page 182)

  •  Expected exponential growth in electric vehicles (EV).

Through policies like the $2,500 California Vehicle Rebate Project and the Governor’s 1.5 million EV by 2025 goal, the growth of EV deployment in California is unprecedented.  As a result, the Energy Commission expects exponential growth in the development and use of electric passenger vehicles in the coming years.  (Page 193) Since electric vehicles offer a significant reduction in greenhouse gas emissions compared to gasoline or diesel‐fueled vehicles, particularly if renewables are the electricity source, this will mean substantial carbon savings in the near future.

Notable in this study is that everything points to these trends continuing in the coming years.  As the report states, “existing government incentives and regulations combined with alternative fuel price advantages, expected economy of sale vehicle manufacturing, and technology advances could lead to at least a three-fold increase in alternative fuel growth by 2020.”  (Page 190)

Increasing diversification of the California fuel mix aligns with forecasts conducted by EDF earlier this year.  If these trends continue, the Energy Commission predicts that “California will achieve goals for petroleum displacement, in‐stage biofuel production, and LCFS compliance.”

Achieving full compliance of LCFS and other clean fuels policies is imperative for California to reach greenhouse gas reductions goals.  Though the state has made a tremendous amount of progress to date, it needs to continue to spur advanced technologies and adequately address challenges related to alternative fuel growth. The IEPR shows that California is on track to doing this and continued implementation of existing policies is key to lasting success.

 

Also posted in Clean Energy, Energy | Comments closed

History Repeats Itself Again: CARE’s New Cost Analysis Paints a One-Sided Picture

Major polluters funding skewed analysis of the costs and benefits of environmental regulations is a long-standing tradition in regulatory circles. In a recent version of this phenomenon, CARE (Californians for Affordable and Reliable Energy), an industry funded front group aimed at attacking clean energy and clean fuel policies in California, hired Navigant Consulting to do just that.

Last week, EDF economists pulled back the curtain on the recently released CARE report and found more of the same scare tactics: one-sided costs estimates yielding unfounded results and cherry-picked outcomes.

Unsurprisingly, our economists found that the CARE study “focused exclusively on the costs of California’s complementary clean energy and clean fuels policies while avoiding comparative assessment of the benefits.”  Additionally, the study was found to “rely on sources that have not been peer reviewed, and misinterpret analyses and energy market trends.”

Due to the noted inaccuracies of the study, the memo makes the point that “policy makers should treat the Navigant study with extreme caution; it likely overstates costs while considering neither the benefits to be enjoyed nor the cost-minimizing aspects of policies carefully designed to deliver environmental benefits as efficiently and quickly as practicable.”

A CARE funded analysis that results in a one-sided finding shouldn’t come as a shock.  The group is funded by some of the largest polluters and fossil fuels producers in California – those that have the most obligations to change under the state’s comprehensive clean energy and climate change laws.  CARE members include the Western States Petroleum Association, the California Manufacturers & Technology Association and the California Chamber of Commerce, as reported on its website.

As California transitions to cleaner, more diversified sources of energy, many businesses will be faced with the stark choice of participating in the modernization of our energy and transportation system or fighting against progress and innovation.  Whichever way those businesses trend, the recent CARE report prepared by Navigant shows that misinformation will continue to be a part of the portfolio approach used by polluters to undermine California’s progress.

For other analysis of industry reports that have overblown costs and underestimated benefits of California’s clean energy and clean fuels policies, read here, and here.

Also posted in Cap and trade, Global Warming Solutions Act: AB 32 | Comments closed

California’s LCFS Ruling is a Win for Consumers and Alternative Fuels Companies

By Tim O'Connor and Larissa Koehler

Last week, we saw a big win for California's Low Carbon Fuel Standard (LCFS) – a regulation to diversify the state’s fuel mix with lower carbon sources of energy.  After almost a year of deliberation, the United States 9th Circuit Court of Appeals filed a decision in the case Rocky Mountain Farmers Union, et al. v. Corey, in favor of California.

In its 79-page decision, the Court addressed two major constitutional issues: 1) whether the LCFS was invalid because it directly regulated wholly out-of-state ethanol producers (extraterritoriality); and 2) whether the LCFS was invalid because it impermissibly discriminated against out-of-state producers based solely on origin, thereby violating the Commerce Clause.  The court overturned a District Court ruling on both grounds, finding that the state can move forward with the LCFS unimpeded.  Of course, the ruling is only a temporary win for California, as additional legal process at the District court — and possibly U.S. Supreme Court — is forthcoming.

Although not required to do so, the Court of Appeals went to great lengths to recognize the importance of California’s leadership in developing and implementing environmental policy.  The Court said it did not wish to “block California from developing this innovative, nondiscriminatory regulation to impede global warming… [as] it will help ease California’s climate risks and inform other states as they attempt to confront similar challenges.”

These words of support for the LCFS and California’s leadership are supported by tremendous growth in alternative fuels industries like California biodiesel, and also by analysis that shows fuel diversification can yield long-term price reductions at the pump.  The 9th Circuit's decision which allows these trends to continue is not just a win for the state in a long legal battle, but also a win for California’s consumers and environment.

Also posted in Global Warming Solutions Act: AB 32, Litigation | Comments closed