Category Archives: Politics

California Climate and Energy: Top 10 Blogs of 2012

2012 was an exciting year for California’s climate change and energy leadership. Our “Top 10 Blogs of 2012” recap some of the year’s highlights and illustrate how EDF is engaged in groundbreaking work in the Golden State every day. Whether it was helping to pave the way for the opening of North America’s largest carbon market in California, or helping design the first commercial On-Bill Repayment program, EDF was at the center of the most important environmental issues facing California in 2012.

In 2013, we will continue to tout both the economic and environmental benefits of California’s landmark environmental programs. California is our nation’s most important laboratory for meaningful action on climate change and clean energy. We must ensure that California serves as a model for the nation proving that good environmental policy can create jobs, spur our economy, and improve our overall quality of life.  We look forward to a productive and prosperous 2013 and will continue to share with you the stories that impact California and shape our nation.

       1. On-Bill Repayment Bill Introduced In California (Published: December 7, 2012)

California Senator Kevin de León introduced a bill, SB 37, which would create the first On-Bill Repayment (OBR) program entirely financed by private capital. OBR allows property owners to finance energy efficiency and renewable generation upgrades and repay the obligations through their utility bills. Read more…

       2. California Cap-and-Trade Auction Success (Published: November 19, 2012)

The results of California’s first ever auction for greenhouse gas (GHG) emissions allowances are public, marking the start of a new era for stimulating innovative solutions to combat climate change. Coincidentally, earlier today new atmospheric data was released by NOAA showing that 2012 is on pace to be the warmest year, eclipsing the mark set only two years ago. Read more…

       3. California’s record gas prices shows AB 32 will help both your wallet and your health (Published: October 10, 2012)

Fuel prices in California hit historic highs this week, an unexpected price spike that has put the state’s dependence on oil and natural gas into sharp focus. Like many of the state’s former fuel price shocks caused by demonstrable events (i.e. foreign and domestic supply disruptions), oil companies are once again saying that refinery problems and pipeline issues were the root cause. However, most reports on the current price swing aren’t pinpointing the true reason – drivers en masse are too reliant on the current mix of gas and diesel, an energy source that pollutes our environment every time it is used. Read more…

       4. Latino Support Surges for the Environment (Published: October 4, 2012)

California lawmakers take notice: Latino voters want a strong economy AND a clean environment, two things they believe are not mutually exclusive. Read more…

       5. What does history say about the costs and benefits of environmental policies? (Published: September 20, 2012)

With just three months to go before California launches North America's first economy- wide cap on global warming pollution, many businesses large and small all over the state are quietly and effectively creating a clean economy that will get a further shot in the arm when California puts a price on carbon in January. Unfortunately, albeit predictably, opponents of this landmark effort choose to overlook the likely benefits and instead spread questionable information about the assumed costs. Read more…

       6. Californians see global warming as a threat, and support action to abate (Published: August 2, 2012)

Decision makers at every level across California should take notice of today’s affirmation that the public supports California’s efforts to respond to the causes of climate change. Read more…

       7. Invest to Grow: EDF’s newest report highlights the opportunities created by the strategic investments behind California’s landmark emissions reduction program (Published: July 13, 2012)

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. Read more…

       8. A Dynamic Approach To California Energy Use (Published: July 5, 2012)

Californians are poised for a more functional, data-driven model for setting the prices people pay for electricity. The new model will make the massive differences in costs of providing electricity during the course of a typical day more evident to us as energy users, thereby inspiring more efficient use of electricity resources. Read more…

       9. Outpouring of Support for California’s Low Carbon Fuel Standard (Published: June 25, 2012)

California’s Low Carbon Fuel Standard (LCFS) has received an impressive outpouring of support from a diverse range of “friend of the court” briefs as the case challenging the regulation makes its way through the 9th Circuit Court of Appeals. Back in April, the LCFS won a preliminary victory when the 9th Circuit held that California could continue to enforce the regulation while the court considers the case. On June 8, the state and other appellants, including EDF, submitted the first full brief arguing the merits of the case. A week later, groups filed seven different briefs in support of the LCFS, asserting a wide range of interests in the case. Read more…

       10. Getting ‘Smart’ About Your Energy Use Just Got Easier (Published: January 20, 2012)

On Wednesday, I attended a presentation of the Green Button at EMC2, hosted by Silicon Valley Leadership Group, OSIsoft and SolarCity, and moderated by Aneesh Chopra, U.S. Chief Tech Officer and Advisor to the President. Read more…

 

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California policy makers must hear variety of indigenous voices on protecting tropical forests

This week, some U.S. NGOs are bringing a group of indigenous people from South America to talk with California policy makers about their opposition to REDD+, the idea that countries, states and communities that reduce carbon emissions from tropical deforestation should be eligible for compensation through carbon markets and public funds.

It’s good for policy makers to hear this perspective, but it’s critically important for these policy makers to hear the great diversity of indigenous voices on the REDD+ issue.

Having worked with indigenous peoples and minorities in the Amazon for over 20 years, in particular on helping indigenous peoples win the struggle for their lands, I’m glad that EDF actively supports indigenous and minority participation in international policy processes, whether or not given organizations or individuals agree with us.

Some NGOs have argued that REDD+ threatens indigenous land rights, that governments and NGOs are inducing indigenous communities to sign carbon contracts, that REDD+ will only benefit rich industrial polluters.

Earlier this year in the Amazon state of Acre, the Catholic Church missionary/indigenous rights organization, CIMI, made these arguments in an affidavit it sent to the Federal Prosecutors’ office, asking for the prosecutor to take legal action against the state System of Incentives for Environmental Services (SISA), under which Acre is formulating its REDD+ program.

Most of Acre’s indigenous peoples, however, do not agree with CIMI, as evidenced by this letter that leaders of the indigenous movement in the state sent to CIMI in response.

Indigenous leaders were dismayed to hear CIMI claimed that they were being manipulated into accepting carbon projects by the government and international NGOs, and pointed out that no one was forcing the indigenous organizations to do anything.

To the contrary, they noted that they are in the process of informing themselves and their communities so they can decide whether they want to participate in REDD+.  The letter makes an interesting contrast between the pros and cons:

“Both those in favor of and those against REDD must be serious and ethical in conveying correct information and establishing continued dialogue. Those in favor of REDD should not promote it as something that can resolve all the problems of our communities; those against it should not terrorize our peoples using western capitalism as a backdrop and creating a climate of distrust and fear based in suppositions and untruths.”

Beyond the borders of Acre, the Coordination of the Indigenous Organizations of the Amazon basin (COICA) comprises the Amazon regional indigenous organizations of the nine Amazon nations. COICA has participated in the international climate negotiations since 2008.

The indigenous peoples’ caucus (including COICA) made this statement to the UNFCCC conference in Durban this year, covering a wide variety of issues including REDD+.

There are some 385 indigenous peoples, speaking about 300 languages, living in 2,344 territories that cover about 2.1 million km2 – an area four times the size of California – in the Amazon, as well as some 71 isolated groups. These peoples have maintained their distinct cultures and identities for thousands of years in the face of enormous, often violent, pressures – their difference unites them. Even the level of awareness of the idea of REDD+ varies enormously amongst them.

The NGOs and indigenous peoples visiting California this week offer one set of perspectives on REDD+, but their views should be considered in the context of the spectrum of indigenous organizations currently engaged on these issues, many of whom view REDD+ quite differently.

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California’s record gas prices shows AB 32 will help both your wallet and your health

Fuel prices in California hit historic highs this week, an unexpected price spike that has put the state’s dependence on oil and natural gas into sharp focus.  Like many of the state’s former fuel price shocks caused by demonstrable events (i.e. foreign and domestic supply disruptions), oil companies are once again saying that refinery problems and pipeline issues were the root cause.  However, most reports on the current price swing aren’t pinpointing the true reason – drivers en masse are too reliant on the current mix of gas and diesel, an energy source that pollutes our environment every time it is used.

The true cause of California’s fuel price spikes must be seen for what it is –an unhealthy dependence on fossil fuel (primarily imported), and lack of diversity in our transportation system.  Furthermore, since over 50 percent of the oil used in the state is obtained from foreign sources, California consumers aren’t exactly benefitting the state’s economy as we send billions of dollars out-of-state but release combustion byproducts here – polluting our air and water.  Over time, the impact of buying and burning all of that gas is going to get even worse: an increasing population and declining in-state oil production means we are going to import, and burn, more.

Growing fuel use and declining in-state production puts California on a path to spend between $112 and $182 billion per year by 2020 on imported energy, which translates to roughly $8,000 to $13,000 per household.   Even worse, the American Lung Association, using EPA data, has included 9 cities and 16 counties in California on their list of most polluted areas in the country; more fuel burning will only exacerbate these problems, worsening air pollution and sickening people – leading to poorer public health, higher healthcare costs, and more missed work and school days.

California’s fuel and energy policies , if implemented as planned, have the ability to protect the economy and help lessen air pollution and human health impacts.  By setting a cap on emissions and requiring a diversification of energy sources away from an over-reliance on fossil fuels, AB 32 will result in decreased dependence on foreign imports and will make California consumers less vulnerable to price shocks.  Low carbon solutions such as advanced biofuels, ultra-efficient vehicles, and improved community planning are all part of the AB 32 solutions package, and all are aimed at breaking the grip that traditional fossil fuel companies have on our economy. Add to that the obvious environmental and health benefits from reducing fossil fuel use, and it is clear that the California Air Resources Board’s vision for AB 32 policies is the right choice for California.

For more information on how AB 32 saves California’s money during fuel price swings, see two articles co-authored by EDF economist Jamie Fine — Shockproofing Society: How California’s Global Warming Solutions Act (AB 32) Reduces the Economic Pain of Energy Price Shocks and The Upside Hedge Value of California’s Global Warming Policy Given Uncertain Future Oil Prices.

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Latino Support Surges for the Environment

California lawmakers take notice: Latino voters want a strong economy AND a clean environment, two things they believe are not mutually exclusive.

A new poll released by the California League of Conservation Voters finds that an overwhelming 90 percent of Latino voters believe that the state can “protect the environment and create jobs at the same time.”  This number mirrors national trends among Latino voters, including a recent national poll by the National Council of La Raza (NCLR) and the Sierra Club, which found that 90 percent of surveyed voters believe that protecting land and water resources is “critical to the economy.”

Here are three major takeaways:

  1.  Latinos are the fastest growing electoral body in the country, and in California they account for 38 percent of the state’s population and 25 percent of the electorate in 2010. There are over 2 million eligible but unregistered Latino voters in the state and almost 2.4 million legal permanent residents who are eligible to become citizens and vote.  With the most recent redistricting process in California, 19 out of 53 congressional districts now have a Latino majority, the largest number of such districts in the country.  In the state legislature, nearly 40 percent of both the Assembly and State Senate are Latino-majority districts.
  2. Latinos can see the direct impact of pollution in their daily lives: 85 percent of those polled have “serious concerns” about toxic pollution affecting the health and wellbeing of their families.  Their concerns are well-founded – California is home to the top 5 most polluted cities in the country according to the American Lung Association, and Latinos make up more than half of all residents in these polluted cities, with populations in the Central Valley reaching a whopping 60 percent.
  3. Latinos want clean energy, and they are willing to pay extra for it.  Latino voters show overwhelming support (83 percent) for the state’s Renewable Portfolio Standard (RPS), one of the main components of the state’s landmark legislation AB 32, which requires one third of the state’s electricity to come from renewable energy sources by 2020 – compare this to 51 percent of Latino voters in the state who oppose drilling off the coast, or a meager 44 percent who favor coal as an energy source.  Most surprisingly, support for the RPS remains strong even when voters are told their energy rates may increase.

On this last point, I’ve written before that the clean economy is an economic opportunity for U.S. Latinos, and the NCLR/Sierra poll confirms that Latinos would rather work in the clean energy sector, with 83 percent calling coal plants and oil refineries “a thing of the past.”  National polls also indicate that Latino voters largely reject the notion that clean energy and environmental protections are “job-killers” or bad for the economy.

While jobs and the economy are still the number one issue on Latino voter’s minds, it is clear that they believe economic growth at the expense of public health or environmental protection is a no-go for California.

 

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The Clean Economy is an Opportunity for US Latinos

(Excerpt from original post on Fox News Latino on 9/13/12)

Economy and jobs are the top issue on Latino voters' minds, according to the 2012 “Latino Decisions Poll,” a theme that will be featured prominently in this week’s Hispanic Heritage events in DC.

It's all the more reason to discuss a powerful engine of opportunity in this country called the clean “green” economy – it is here, it is real, and it is one of the few bright spots in an economy desperate for a comeback.

In 2010, I wrote “Green Can Grow Latino Business,” arguing that the clean economy will create new demand for goods and services, new supply chains and niche markets, and opportunities to create new business models and reinvent old ones.

This is a boon for all would-be entrepreneurs, including Latinos — the nation’s fastest growing demographic. Further, new business creates jobs, and jobs create more demand for goods and services, and the virtuous cycle continues.

The results?  Despite the persistence of a national recession, the clean energy sector grew at double the rate of national economy from 2003-2010, attracting record-level investment and venture capital last year, and boasting twice the export value of traditional sectors.  In total, “Green Goods and Services” as defined by the U.S. Department of Labor accounts for 3.1 million U.S. jobs, with more than one-third of those jobs in the struggling construction and manufacturing industries.

In my home state of California, where Latinos make up 38 percent of the state’s population, the numbers are even more striking:

  • California leads the country in clean economy jobs and solar power generation, and wind power has doubled since 2002.
  • The state accounts for 13 percent of all “environmental goods” exported by the U.S., the majority in renewable or efficiency products.
  • From 2002 to 2011 the state produced 9 percent of worldwide clean energy patents,
  • Since 2006, $9 billion in venture capital has flowed to California clean technology firms.

Jobs in the clean economy are diverse, across a wide range of education-level and skills.  On average, clean economy jobs offer a higher median wage and career advancement opportunities, and almost half of all jobs in the clean economy don’t require a college degree, according to the Brookings Institution.

An analysis of clean energy jobs in Southern California by Philip Romero, the former Dean of CSU Los Angeles College of Business and Economics, finds that “workers command wages with a 50-to-100 percent premium over the average job,” and estimates that the overall clean economy will grow “by at least 60-to-100 percent”  by the late 2030’s.

If we want to compare this to fossil fuels, we find that the overall clean economy employs “more than ten times as many workers in the LA region as does petroleum and coal products production,” according to Romero — and analysis of the oil industry’s own job estimates finds that more than half of all the state’s “direct jobs” are gasoline station attendants making minimum wage.

If we want to have a serious discussion about economic opportunity – for all communities – we need look no further than the clean “green” economy.

It is an economic engine that is creating new demand, new investments, well-paid jobs, and new business opportunities, all in spite of the worst economic downturn since the Great Depression.

And, by the way, it is creating economic growth without harming the planet and poisoning communities with toxic pollution.  If we want America to continue being the land of opportunity, then let green grow!

 

Jorge Madrid is a Fellow with the Environmental Defense Fund. He is also a member of the Board of Directors of Voces Verdes, and a former Graduate Fellow with the Congressional Hispanic Caucus Institute, and the California Latino Caucus Institute.  He can be reached at jmadrid@edf.org 

See original post at: http://latino.foxnews.com/latino/politics/2012/09/13/jorge-madrid-clean-economy-is-opportunity-for-us-latinos/#ixzz26SmlEJOy

 

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New Dungeness crab law protects permitted fishermen and crab habitats

Fresh Dungeness crab catch of the day

California’s Dungeness crab fishery is one of the state’s largest and most important commercial fisheries and is an economic foundation for many of California’s ports.  A bill recently passed by the California Legislature, SB 369 (Evans), will cap the number of traps that individual fishermen can use.  This will not only protect crab populations for generations to come, but will protect the economic viability of the fishery and the coastal communities that rely on it.

The problem is that the number of crab traps being used in the fishery escalates each season as fishermen race to catch crab. This “arms race” creates unnecessary ecological impacts and threatens the long-term economic health of the fishery. This frenzied derby effect leads to a glut of crab on the market at the beginning of the season and correspondingly depresses the value of crab. It also leads to significant safety risks as the intense pressure to compete during the initial weeks of the season can lead fishermen to go out in dangerous winter weather.  This resulted in broad recognition among fishermen that trap limits are needed, but until now, agreement on what those limits should be could not be reached.
 

Bay Area crab fisherman preparing for the catch. Photo by Justin Sullivan/Getty Images News

To help address this problem, Environmental Defense Fund was approached by a group of crab fishermen in 2008 to help sponsor a bill (SB 1690 – Wiggins) to create the Dungeness Crab Task Force.  The group was charged with developing recommendations to the Legislature to address the challenges facing the fishery, including the “arms race.” It was comprised of an elected group of diverse fishermen from all major crab ports and representing both large and small boats. The group met during 2009 and 2010 and came to consensus on the design for a trap limit in the fishery. The new law incorporates the recommendations of the Dungeness Crab Force. Fishermen are broken out into 7 “tiers” basedon how much crab they’ve landed in the past. Fishermen who have landed the most can fish with 500 traps and those who have historically landedthe least can fish with 175.  The law also includes sufficient fees to cover all of the costs identified by the Department of Fish and Game (DFG) and was passed with bipartisan support by the Legislature. It’s supported by major fishing organizations such as the Pacific Coast Federation of Fishermen’s Associations and the Crab Boat Owners Association, as well as environmental groups such as EDF, the Sierra Club, and the Natural Resources Defense Council

 
Let's thank Governor Brown for passing SB 369 and helping to ensure the long term biological and economic sustainability of California Dungeness crab fishery, while at the same time promoting fishermen safety at sea.

 

Also posted in Ecosystem Restoration, Ecosystem Services, General, Pacific Ocean | Comments closed

Clean Air Act Benefits Exceed Costs More Than 30-to-1

The U.S. Environmental Protection Agency (EPA) has just released a report on the Clean Air Act that would make any investor proud. It shows that for every dollar spent on regulations to cut air pollution over the last 30 years, we’ve earned more than $30 in savings to go along with tremendous public health benefits.

Members of Congress have spent much of the last two months trying to roll back clean air protections. They’ve argued that the Clean Air Act is bad for the economy. This report shows otherwise. As EDF’s president Fred Krupp notes, “If anyone still doubts that America can afford to do the right thing, this report should settle the matter. Cleaner air will unquestionably improve our health, our economy, and our lives.”

California still ranks among the states with the worst air pollution. Just this week, Forbes released a list of the ten most toxic cities in America. Four of them are California cities: Bakersfield (2nd place), Fresno (3rd place), Los Angeles (6th place) and Riverside-San Bernardino (10th). Poor air quality was a major reason they qualified.

Ironically, all of those cities have improved their air quality in the last decade. The trouble is that they’ve also grown dramatically, which has only added to the number of vehicles and other sources of pollution. Can you imagine how much pollution—and lung disease—we’d have in those cities and around the country if tailpipe and power plant pollution controls had not been in place these last 30 years?

California needs the Clean Air Act for many reasons, but the economic benefits particularly stand out. An earlier peer-reviewed study found that dirty air in the Los Angeles Air Basin costs local residents nearly $22 billion a year in health costs, premature death, lost days at work and lost days at school. In the San Joaquin Valley, the annual costs amount to about $6 billion.

Think about it: that’s $28 billion in costs each and every year—nearly as much as it would take to resolve the state’s budget deficit this year.

Now add EPA’s new study showing that we get $30 worth of value on every dollar invested in clean air and another thing becomes clear: those who are working to weaken the Clean Air Act and reduce EPA’s authority are effectively selling an investment that’s returned billions of dollars to our economy.

A  poll released last month by the American Lung Association found that three out of four Americans support the EPA setting tougher standards on specific air pollutants, including mercury, smog and carbon dioxide. It also found that 68 percent of voters oppose Congressional action that impedes the EPA from updating clean air standards generally and 64 percent oppose Congressional efforts to stop the EPA from updating standards on carbon dioxide.  If you want to protect these economic benefits and help prevent putting tens of thousands of lives at risk, you can voice your support for the Clean Air Act and the EPA by clicking here.

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Attacks on Clean Air Act Threaten Healthy Air for America and California’s Environmental Leadership

Would Stop Clean Cars Program, Put Pollution Reduction Goals at Risk and Threaten State’s Communities

Attacks on America’s landmark clean air law intensified on Wednesday in Washington D.C. The U.S. House of Representatives Energy and Power Subcommittee held its first hearing on a draft bill to undermine the country’s Clean Air Act.

The attacks take direct aim at California’s long-standing clean cars program – vital clean air measures that have protected California’s health and environment for more than 40 years.  

The bill, sponsored by Rep. Fred Upton (R-MI) — and a companion version of the bill in the Senate sponsored by Jim Inhofe (R-OK) — would strip the Environmental Protection Agency’s planned update to improve the act’s pollution limits by addressing greenhouse gases (GHG).  

Among other things, the bill would:

  • Overturn the EPA’s independent scientific determination that greenhouse gas pollution endangers human health;
  • Overturn the Supreme Court’s finding affirming that the EPA has the authority and responsibility to regulate those emissions,
  • Block EPA’s measures to require the nation’s largest industrial emitters to deploy cost-effective pollution mitigation at the time of construction or modernization; and
  • Prohibit the EPA from requiring additional GHG reductions from motor vehicles and repeal California’s long-standing authority to regulate these harmful emissions.

What hasn’t been reported so far is the blow this legislative attack would have on California’s successful environmental leadership, a record that has delivered tremendous health and economic benefits to Californians and to all Americans.   

Many of the folks I’ve spoken with believe that environmental attacks in D.C. won’t really impact California since we have our own air pollution limits and groundbreaking environmental standards. In this particular case, unfortunately, they’re wrong. 

If this bill becomes law, California will be prohibited from limiting global warming pollution from vehicles, which accounts for nearly 40 percent of the state’s emissions. Blocking California’s ability to reduce pollution within its borders would mean:

  • more pollution;
  • less fuel efficiency in cars and trucks; and
  • sagging demand for innovative hybrids and electric vehicles.

This would cripple California’s ability to cut pollution to 1990 levels by 2020 as required by the state’s landmark clean energy and climate change law, AB 32.  It would also mean importing more oil from unstable and unfriendly governments, and forcing California drivers to pay more at the pump.

James Goldstene, executive officer of California’s Air Resources Board (CARB), the primary agency charged with protecting the state’s air quality and overseeing implementation of AB 32 testified at yesterday’s congressional hearing. He said that California has established pollution standards for new vehicles sold in the state since the 1960s. Since the 1980s, each successive California standard has gone on to become the national standard.

“Preempting the authority for EPA to regulate the emissions of vehicles would rob this country of one of its most powerful tools not just to reduce carbon pollution, but also to reduce our dependence on foreign oil, and to save consumers money. And every dollar not spent on foreign oil is a dollar spent here.”

Last year, the EPA adopted the first national greenhouse gas emissions standards for cars and light trucks for model year 2012-2016 vehicles. These were based on California’s standards, which 13 other states had adopted. They are expected to improve fuel efficiency by about five percent annually, reduce fleet-wide greenhouse gases 21 percent by 2030 and save 1.8 billion barrels of oil over the lifetime of the vehicles sold under the program.

Upton’s bill “changes the manner in which motor vehicles have been regulated in the United States for 40 years” and would prohibit the EPA and California from establishing new tailpipe emissions standards and from making further revisions to the standards announced last year.

As EPA Administrator Lisa Jackson noted in her testimony at the hearing, Chairman Upton’s draft bill would eliminate portions of the Clean Air Act that “saves millions of American children and adults from the debilitating and expensive illnesses that occur when smokestacks and tailpipes release unrestricted amounts of harmful pollution into the air we breathe.”

Last year alone, EPA’s implementation of the act:

  • saved more than 160,000 American lives;
  • avoided more than 100,000 hospital visits;
  • prevented millions of cases of respiratory illness, including bronchitis and asthma;
  • enhanced American productivity by preventing millions of lost workdays; and
  • kept American kids healthy and in school.

According to Jackson, it also contributed to dynamic growth in our domestic clean tech industry, which in 2008, generated nearly $300 billion in revenues and $44 billion in exports.

Californians pride themselves on their state’s innovation. If we want to continue this leadership role, Upton’s bill, and other like-minded attacks, must be defeated.

EDF will continue working with our allies to protect the Clean Air Act, which an overwhelming majority of Americans and tens of thousands of businesses support–for good reason.

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Not the U.S. or China, but the U.S., China and the Planet

January 21, 2011

This was originally posted by Gernot Wagner in California, International, Markets 101, Politics in EDF's Market Forces blog.

One of the pleasures of my job is having a slew of superbly qualified prospective interns knock on our doors. Yesterday, I interviewed someone who graduated at the top of his class at Renmin University in Beijing.

There have been plenty of column inches written on "China versus the US," including when it comes to green jobs and clean tech. So,

Who's going to come out ahead, China or the United States?

It took him nary a second to nail this one:

China, relatively. Both China and the U.S. in an absolute sense.

That's the textbook answer.

The atmosphere wins

China has a lot of catching up to do. Comparatively, it will clearly gain on the U.S. But trade also has advantages for both parties involved. That's why we trade in the first place.

The planet emerges as a winner as well. It doesn't care where a ton of carbon gets emitted or where it gets reduced—just that reductions happen.

If China produces cheaper solar panels, we get fewer emissions overall. The planet wins. China wins. What about the U.S.?

What about jobs?

If you are among the 800 workers in Devens, MA, who last week found out that Evergreen Solar was moving its plant to China, you will feel very differently about free trade right about now. The textbook economic answer would say that the move can still make everyone better off: compensate the losers through portions of the gains from the winners, and everybody wins once again.

This situation, of course, is the moment when you throw out your textbook and think about the full consequences.

As a result of the move, solar panels will likely become even cheaper for everyone, enabling many more to buy them. Still, the Devens 800 will not be among the people lining up to buy cheaper solar panels.

What can they do? What should the U.S. do as a matter of policy?

First, we need to realize that the rules of trade still apply. China has lots of cheap labor. It does and will continue to manufacture many products sold in the U.S. Solar panels are no different.

But that's still not a satisfying answer, nor is it the whole story—not for manufacturing itself, and not for the clean tech industry overall.

How to keep clean tech jobs in the U.S.

To get to the bottom of this, we need to look at the full supply chain for solar panels. This, of course, oversimplifies things, but we can split the entire process into three distinct buckets: inventing, producing, and installing.

Right now, the U.S. is inventing, China is producing, and it is the one installing the resulting solar panels domestically at massive scale.

The U.S. ought to do everything to make sure it keeps inventing clean tech products. That means a concerted push to fund basic research and development. But R&D subsidies alone won't do.

Many mentions of "R&D" add a second "D" for deployment. Government support can get things going, but large-scale deployment of clean technologies won't happen through subsidies alone (at least not without bankrupting the government).

So how do you get deployment up to scale?

Deployment clearly needs to be driven by demand. That's where a cap on carbon pollution, with its resulting price on carbon, comes in. A cap helps create a more level playing field for solar and other renewable energy sources relative to fossil energy and, therefore, creates the necessary demand. (There are alternatives, like simply requiring a certain percentage of power to come from solar, but none is quite as cheap and flexible as a cap.)

Made in USA?

Moreover, cheap labor and cheaper production facilities may be a decisive factor, but they are not the only reason companies consider when choosing where to locate. There are many more, but let's focus on two: intellectual property (IP) protection and being close to where the demand is.

The U.S. has a leg up on China in terms of IP protection. That's, in part, why the U.S. (still) leads on R&D. It's also a clear draw for some companies to locate their production facilities in the U.S.

Another oft-cited reason is to be close to consumers. That's once again where the importance of the second "D"—deployment—comes in. The more demand there is for solar panels in the U.S., the more companies will locate their production plants in the U.S. as well. The case of First Solar supplying panels for Wal-Mart is a prime example. (Note that this is distinct from cheaper production leading to more demand in the first place.)

In the end, though, we must also be clear that jobs will be different in the new, cleaner economy. We will need fewer gas station attendants. Many other jobs will thrive. Underlying trade forces will mean that China may well be producing many of the solar panels sold globally. Assembling, installing, and maintaining solar panels in the U.S. will require plenty of skilled labor. And none of these jobs can be exported.

California leading

With the right policies in place, the U.S. will keep inventing. It will also create thousands of jobs dedicated to deployment. China will play a major role in producing, but even there, smart environmental policy can only help.

California is taking the lead with its Million Solar Roofs initiative, creating many a job assembling, installing, and maintaining solar panels. That initiative, though, still has to be paid for by tax dollars, and it won't go on forever.

That's where the cap on carbon kicks in. California is bound to stay ahead of the rest of the U.S. with its ambitious cap-and-trade system that starts on January 1, 2012 and the resulting market signal that says that clean tech pays in the U.S. as well.

Consider the just-released Next 10 report, Many Shades of Green, that found that in the most recent observable 12-month period (January 2008 – January 2009) jobs in the green sector grew more than three times faster than total employment in California. (Of course, all of this always comes with the warning that green sector jobs are still a small fraction of total jobs—much like IT jobs were a minuscule part of overall employment in the early 1980s.)

One of our internship spot may well end up going to a Chinese student, but that, too, can only be good for the planet—making a small contribution to help train the next generation of Chinese environmental leaders. And rest assured, there are plenty more open job positions (including one for a post-doc working with our economic team, open to anyone with a Princeton affiliation).

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Brown Brings Life and Hope to Transit Funding

This piece was originally posted in EDF's Way2Go blog and was written by Kathryn Phillips.

The last two years have been grim ones around the country for transit agencies.  The economy’s slide has meant cuts in funding for drivers, managers and mechanics, and that’s generally meant cuts in service.

California’s transit agencies have been especially hard hit. As the state’s deficit grew bigger and bigger (it’s higher than $27 billion today), the legislature and then-Governor Arnold Schwarzenegger began digging into state funds designated for transit to fund other essential services. The battles that erupted and the maneuvers to protect transit that evolved as a result were complex enough that only a 19th-Century Russian novelist could do the tale justice.

This week California’s newly inaugurated governor, Jerry Brown, began restoring life to transit and California’s transit users. He unveiled his 2011-2012 budget proposal and it includes a boost in transit funding. As one transit official suggested, it will help stop the bleeding.

The word on the street has been that this governor gets it about transit. He gets that good transit is essential to reduce greenhouse gas emissions and health-threatening air pollution, to get people to work and school, to reduce traffic congestion and make daily travel more reliable.

There were many reasons to believe this might be true. Throughout his career—two other terms as governor, two terms as mayor of Oakland, a term as attorney general—Brown has demonstrated that he thinks Californians need to be creative and smart about how we deal with transportation demand. Still, until that first budget came out, there was only hope.

The governor’s budget proposal now has some hurdles to clear. It now goes to the legislature where there will be hearings and debate and more debate,  leadership meetings, and finally a series of legislative votes.

If it clears these hurdles, the proposal won’t totally solve the transit funding crisis in this state. However, it will help restore and maintain some service, and it settles the Capitol feuding over whether the state should even contribute to transit operations funding. With that settled, Californians can start the real conversation about how to pay for the level of transit Californians need.

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