Energy Exchange

Keep reading for an overview or dig right into a new Environmental Defense Fund (EDF) policy brief on transportation fuel prices and the proposed 50 percent fossil fuel reduction for more details.

If you are a movie buff, you might remember Groundhog Day in which Bill Murray’s character had to relive the same day over and over again. Well, if you live in California, you probably feel like the existing gasoline and diesel system is on the same style of hamster wheel (i.e. roller coaster prices, Californians paying more than the rest of the country, and the petroleum industry spending the money you pay at the pump to lobby against any change).

As the 2015 legislative season comes to a close, a new script can be written for the state’s transportation fuel system in the form of SB 350 (De León). This effort would reduce petroleum use by 50 percent and in the process could reduce overall gas prices in California, reduce seasonal and annual volatility, and inject healthy competition into fuel markets that retain and create jobs across the state.

Understanding how SB 350 can help fuel consumers across California is actually pretty simple. Since the vast amount of California’s fuel is sold by a limited number of providers and drivers primarily rely on a single type of specialized fuel (CARB reformulated gasoline) – there is basically no competition in the market or choices available to consumers. Therefore, decisions by fuel providers to fix refineries or upgrade pipelines have impacts that directly affect the price Californians see at the pump, as well as how much profit or loss those same fuel providers experience. With significant profit margins and a massive fuel consumption rate, it’s no wonder the petroleum industry is trying to retain the status quo where they can single handedly inflate gas prices and profits. Read More »

Last week, the U.S. EPA released a historic proposal for new rules to reduce methane emissions from the oil and gas industry, a step toward meeting the ambitious national goal of reducing these emissions 40 to 45 percent in the next decade. California is a step ahead, with new regulations already in development to cut methane from oil and gas operations within its borders.

Even as the rest of the nation begins to catch up, it’s critical that California continues to move forward with developing state standards that complement the federal rules, and go even further when necessary.

Methane emissions from the oil and gas industry are a massive problem – the industry emits more than 7 million tons of the potent greenhouse gas each year, equivalent to the 20-year climate impact of 160 coal-fired power plants. And the latest scientific research indicates the problem is even bigger than we think. For example, a study published just last week says previously unrecorded emissions from thousands of gathering facilities are eight times higher than estimates, and would increase the current inventory of methane emissions by almost 25 percent. Read More »

Cutting gas and diesel use in California has been a focus of Sacramento policy makers for years. After all, fuel combustion chokes our state with exhaust, releases a massive amount of global warming pollution, and undermines our economic security. And, at nearly 20 billion gallons of total use per year costing drivers over $50 billion a year – with much of the money flowing directly out of the state – it is no small challenge.

Despite many in-state efforts to cut gas and diesel use over the past decade, population and economic growth have erased many of the fuel use reductions achieved. This year, through dedication by Governor Brown and the legislature to fight climate change and make California stronger, there are promising solutions on the horizon. The solution making the biggest splash is SB 350 (De León) – a bill currently before the legislature – proposing (among other things) a statewide goal of 50 percent petroleum use reduction by the year 2030. With this ambitious goal, California can and will make real progress towards meeting its transportation needs using less oil for the years to come.

Understanding how California can meet a 50 percent petroleum use reduction goal by 2030, and why this goal is good for the state, hinges on four key concepts (explained in more detail here). Read More »

Cutting gas and diesel use in California has been a focus of Sacramento policy makers for years. After all, fuel combustion chokes our state with exhaust, releases a massive amount of global warming pollution, and undermines our economic security. And, at nearly 20 billion gallons of total use per year costing drivers over $50 billion a year – with much of the money flowing directly out of the state – it is no small challenge.

Despite many in-state efforts to cut gas and diesel use over the past decade, population and economic growth have erased many of the fuel use reductions achieved. This year, through dedication by Governor Brown and the legislature to fight climate change and make California stronger, there are promising solutions on the horizon. The solution making the biggest splash is SB 350 (De León) – a bill currently before the legislature – proposing (among other things) a statewide goal of 50 percent petroleum use reduction by the year 2030. With this ambitious goal, California can and will make real progress towards meeting its transportation needs using less oil for the years to come.

Understanding how California can meet a 50 percent petroleum use reduction goal by 2030, and why this goal is good for the state, hinges on four key concepts (explained in more detail here). Read More »

Today, a group of major investors from across the country, who manage more than $1.5 trillion in assets, issued a letter calling for strong rules to limit harmful methane emissions from the oil and gas sector. Among them are California’s two biggest retirement funds – CalPERS and CalSTERS, which together manage nearly $500 billion in funds on behalf of approximately one and a half million members.

The powerful statement issued by the group of investors calls out the “serious threat” methane poses to climate stability, saying that it compelled them to support action on the issue to avoid near term threats to “infrastructure and economic harm that will weaken not only the companies we invest in, but the nation as a whole.”

California’s Leadership Role

Although the investors’ letter focuses on national rules, the relevance to California cannot be overlooked as the state has, over the past year, taken a leadership position on regulating harmful methane emissions from oil and gas operations. For example, California is currently developing new rules at the California Public Utilities Commissions (CPUC) to reduce methane emissions in the natural gas supply chain, and a new statewide plan and regulations are being developed at the California Air Resources Board (CARB) to limit methane emissions from oil and gas production. Read More »