California Dream 2.0

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 are 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 / Read 3 Responses

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 / Read 1 Response

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 are 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 are 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 are closed