Climate 411

Washington’s fourth cap-and-invest auction of the year shows strong demand

Results were released today for the fourth and final auction of the year in Washington’s cap-and-invest program, with strong demand projected to raise $394 million in revenue for investments in communities, affordability and climate resilience.

As Washington wraps up its third full year in operation, this still-young program continues to demonstrate how effective an ambitious cap-and-invest program can be at reducing pollution and raising revenue. And with program linkage with California and Quebec’s linked market on the horizon, Washington is at an exciting point in its program trajectory.

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How cap-and-invest can cut pollution and bring down costs for Coloradans

Colorado is facing rising costs, a rapid increase in energy demand and attacks on clean energy from the federal level. On top of all of this, the state is far from meeting its climate targets as climate-related disasters, like wildfires and droughts, become more frequent and extreme.

As Colorado leaders confront these challenges, they should consider policies that cut costly pollution and improve people’s lives right away. Cap-and-invest is a proven program that offers a two-in-one solution: Driving down dangerous pollution, while investing in stronger communities and Colorado businesses and lowering energy costs to help meet our climate goals.

Colorado Senator and candidate for Governor, Michael Bennet, just published a proposal that would create a cap-and-invest program in the state. In this blog, we will break down the basics of cap-and-invest, and how this type of program can deliver a stronger and more affordable Colorado. 

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California regulators prioritize keeping electric bills affordable over increasing utility shareholder profits

Energy bills have been on the rise across the nation — and California is no different. A recent study highlights a variety of factors impacting Californians electric costs, including increased costs to harden the system from wildfires and more investments in fixed-capital infrastructure.

Fortunately, energy regulators in California are poised to take two steps to address energy bill affordability, while still protecting the environment. The first is a critical decision on how energy utilities structure their profits, known as the “cost of capital”, and the second is a new set of rules focused on how California measures the affordability of utility services. 

EDF projects that, by bringing shareholder profits in check, these actions could result in over $300 million in annual savings for Californians.

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California’s latest cap-and-invest auction highlights opportunity for stronger climate action

Photo of the coastline in Malibu, California

Results released today for the California-Quebec cap-and-invest auction demonstrate that, while California’s reauthorization of the program through 2045 has helped keep prices off the floor, there’s clear appetite for greater ambition as California Air Resources Board (CARB) resumes its rulemaking process on program updates. The auction delivered largely stable results, with current vintages settling at a slightly lower price compared to the August auction while future vintages settled slightly higher. All current and future vintage allowances sold.

While these results demonstrate continued but modest improvement in market confidence (for context, uncertainty in the market cost California some $3 billion over the past year), they also show that there’s room for greater program ambition. The market can afford for CARB to do more to maximize the benefits of this landmark program for the state’s economy, cost of living and climate through the rulemaking process.

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New York doesn’t need to choose between climate action and affordability

A New York court recently found the Hochul administration to be in violation of its climate law for failing to put in place regulations that would achieve the state’s emissions limits. Just days after the court’s ruling, Governor Kathy Hochul signaled her intent to appeal, citing affordability concerns as the primary impediment to advancing the state’s climate goals.

But robust evidence in New York and experience from other states shows that the choice between climate action and affordability is a false one. By moving forward with cap-and-invest — a powerful and flexible policy tool — Governor Hochul can deliver on both.

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California Can Lead the Next Generation of Clean, Affordable Cars – Again

Photograph by Pierre Jeanneret

California has long led the way on standards and policies that advance clean, affordable vehicles. As the federal government threatens to roll back national vehicle climate protections, the California Air Resources Board (CARB) is charting a path forward with its Drive Forward light-duty vehicle standards – a program that can deliver cleaner air, stronger climate action, and more affordable options for drivers. Last week, Environmental Defense Fund (EDF) submitted comments urging CARB to move boldly and swiftly.

Stronger Standards to Protect Health, Cut Climate Pollution, and Expand Choice

EDF strongly supports CARB’s interest in next-generation, performance-based standards for greenhouse gases and tailpipe pollutants such as non-methane organic gases (NMOG) and oxides of nitrogen (NOx). NMOG and NOx contribute directly to smog and fine-particulate pollution that can harm lung development, worsen asthma and cardiovascular disease, and even increase the rate of premature deaths. Greenhouse gas pollution drives climate-fueled extreme weather that threatens public health and welfare.

Californians deserve cleaner air – verified both in laboratories and on real roads under real conditions. For instance, some vehicles still produce sharp emission spikes during uphill driving or in colder temperatures. We support CARB’s exploration of provisions to ensure emissions controls deliver their promised benefits throughout a vehicle’s useful life and under real-word conditions – on LA streets or Central Valley highways, in summer heatwaves or on cold winter mornings. Closing these real-world gaps is essential.

Next-generation standards can drive major pollution cuts while giving manufacturers multiple compliance pathways: electric vehicles, hybrids, plug-in hybrids, or lower-polluting internal-combustion engines. These cleaner options often cost less to fuel and maintain, saving drivers hundreds of dollars each year. Bottom line: Californians get cleaner air and more choices – and California continues setting a model others can freely adopt.

Near-Term Gains Matter – Early Action Can Deliver Them

We also support CARB’s interest in starting new standards as soon as possible, paired with meaningful incentives for manufacturers to take early action on delivering cleaner cars even more immediately. For example, accelerating cleaner models before 2030 would cut smog-forming pollution during the state’s worst ozone seasons – especially in the Central Valley and South Coast, which suffer from the nation’s most persistent ozone pollution year after year. Early reductions are essential for meeting health-based air quality standards and reducing smog and soot in communities that need relief now.

A Chance to Cut Air Pollution with Proven Technology

EDF urges CARB to strengthen its tailpipe particulate matter (PM) standard by aligning with the U.S. Environmental Protection Agency’s (EPA) most protective emissions requirements. Gasoline particulate filters are already widespread globally, including on many U.S.-made vehicles. Adopting this standard would rapidly cut harmful PM pollution using affordable, off-the-shelf solutions. This is a low-cost, high-impact solution that will cut pollution and save lives.

Empowering Consumers with Better Information

With zero-emission vehicles (ZEVs) representing more than a quarter of all new vehicle sales in California, a new CARB-designed EV window label could boost sales by enhancing how Californians understand their affordability benefits. An EV label showing a typical driver could save $6,000 on fuel and maintenance over the vehicle’s lifetime, for instance, would give shoppers practical, relatable information at a glance. We encourage CARB to ground its label design in empirical research and consider including information about pocketbook savings, reductions in smog-forming and soot pollution, and real-world driving ranges, charging speeds, and battery durability. A well-designed label can cut through confusion and help drivers make informed choices.

Moving Forward

California’s leadership is indispensable – for the state, for partner states, and for everyone who benefits from cleaner air, a safer climate, and meaningful cost savings. CARB’s Drive Forward program can deliver durable, flexible, and protective standards that rise to this moment and lower costs for Californians – through reduced fuel and maintenance bills and lower electricity costs. EDF looks forward to continued engagement as the rulemaking progresses.

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