Category Archives: General

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

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

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

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

Also posted in Auction revenue, Cap and trade, Cap-and-trade auction results, Global Warming Solutions Act: AB 32, Linkage, Transportation| 1 Response, comments now closed

Practice Makes Perfect for California and Quebec Joint Auctions

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

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

Also posted in Cap and trade, Global Warming Solutions Act: AB 32, Litigation| 1 Response, comments now closed

Methane leaks need to be a thing of the past, and Sacramento is taking a step in the right direction with SB 1371

California has more than 100,000 miles of often-aging natural gas transmission and distribution infrastructure.   Methane, the primary component of natural gas, when vented or allowed to leak into the air is 84 times more potent than carbon dioxide at contributing to climate change over a 20-year timespan.  In addition, according to data from the Intergovernmental Panel on Climate Change, more than one-third of today’s human-caused global warming comes from short-lived climate pollutants that include methane. Taken together, this data shows how critically important it is to minimize natural gas leaks quickly.

Senate Bill (SB) 1371, authored by California State Senator Mark Leno, aims to cut methane pollution from California’s gas transmission and distribution system by requiring the Public Utilities Commission to get more aggressive in requiring utilities to find and fix natural gas leaks.  Yesterday, SB 1371 passed a critical vote in the State Assembly and is well on its way toward final passage later this summer. 

What does SB 1371 do?  Put simply, SB 1371 changes the way utilities respond to natural gas leaks.  Read More »

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

Fueling the Future: How California Businesses are Advancing Earth Day’s Vision

By Emily Reyna and Larissa Koehler

To mark the 44th Earth Day, EDF has released a new Green Roads map celebrating clean transportation, an economic sector that is helping the Earth by producing groundbreaking and sustainable technologies.

We Californians like to drive, but unfortunately our dependence on petroleum is harming our state, giving us the nation’s most polluted cities and the state’s biggest contributor to climate pollution (see the graph).

California greenhouse gas emissions by sector. Source: California Air Resources Board - May 2013 Investment Plan

California greenhouse gas emissions by sector. Source: California Air Resources Board – May 2013 Investment Plan

Fortunately, state policies like the Low Carbon Fuel Standard (LCFS) and the AB 32 cap-and-trade program are helping to reduce damaging greenhouse gas emissions and air pollution, while bolstering California’s economy and allowing green companies to grow and thrive.  In fact the number of clean transportation jobs in California tripled from 2001-2011. Read More »

Also posted in Clean Energy, Climate, Global Warming Solutions Act: AB 32, Jobs, Transportation| Comments closed
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