Tag Archives: Western States Petroleum Association

California regulators restore emissions-cutting fuel rule

Repost from the Associated Press

California regulators restore emissions-cutting fuel rule

By Judy Lin, Sep. 25, 2015 5:49 PM EDT
Mary NIchols, Barbara Riordan
Mary Nichols, left, chairwoman of the California Air Resources Board, applauds after the board restored ambitious rules to cut transportation fuel emissions 10 percent within 5 years, during a hearing in Sacramento, Calif., Friday, Sept. 25, 2015. By a 9-0 vote the board restored rules requiring a 10 percent cut in carbon emissions on fuels sold in the state by 2020, despite oil industry objections that it could drive up gas prices. At right is ARB board member Barbara Riordan. (AP Photo/Rich Pedroncelli)

SACRAMENTO, Calif. (AP) — California regulators on Friday restored ambitious rules to cut transportation fuel emissions 10 percent within 5 years, a decision that gives Gov. Jerry Brown a boost for his climate change agenda.

The rules further strengthen California’s toughest-in-the-nation carbon emissions standards, but oil producers warn the changes could drive up costs for consumers at the gas pump.

The changes are expected to add a few cents a gallon to the cost of gasoline and diesel fuel in the state that already has some of the highest gas prices in the nation. The state estimates a typical commuter will pay an extra $20 to $24 in 2017, increasing to $52 to $56 in 2020.

“We are on a path to reduce our dependence on petroleum and this program is a key piece of that action,” Mary Nichols, chairwoman of the California Air Resources Board, said ahead of the vote.

Brown, a Democrat, has vowed to intensify his fight against climate change after the oil lobby helped kill a Democratic legislative proposal earlier this month to slash statewide petroleum use by half in 15 years. The board is the state’s top regulatory agency to enforce rules aimed at reducing air pollution.

Regulators voted 9-0 to re-adopt its low-carbon fuel standard, which requires producers to cut the carbon content of fuels 10 percent by 2020 to help the state meet its emission-reductions goals.

The program was initially adopted in 2009 but the reduction target has been frozen at 1 percent because of a court fight. Friday’s vote allows the state to resume its program; modifies rules in response to industry concerns about price spikes; and gives companies more credits for using renewable hydrogen and other investments to reduce pollutants.

Supporters say the program is worthwhile because it will encourage greater use of cleaner biofuels and electric vehicles, which can be cheaper to operate than those powered by gasoline or diesel.

“This puts it back on track,” Bill Magavern, policy director at Coalition for Clean Air, an environmental advocacy group, said after the vote. “We have other programs that address vehicle technologies and vehicle miles traveled, and this is the one that tells oil companies to reduce the carbon intensity of their fuels.”

Oil producers counter that the rules are unworkable and too costly. They said the standard will impact consumers as the companies try to comply with the mandate or face being shut out of the market.

Catherine Reheis-Boyd, president of the Western States Petroleum Association, which represents oil companies, said the low carbon fuel standard jeopardizes the state’s energy future and adds uncertainty.

“California motorists need to know what is coming and how these regulations will impact transportation fuels,” Reheis-Boyd said in a statement.

Unlike other rules the state has adopted requiring cleaner-burning fuel or more fuel-efficient vehicles, the standard, first proposed in a 2007 executive order from then-Gov. Arnold Schwarzenegger, calls for counting all the pollution required to deliver gasoline, diesel or alternative fuels to in-state consumers — from drilling a new oil well or planting corn to delivering it to gas stations.

In addition to tailpipe emissions, it includes factors such as whether an ethanol factory uses coal or natural gas to power production or an oil rig uses diesel fuel to drill.

Regulators are targeting transportation fuels because California’s roughly 30 million vehicles account for about 40 percent of the state’s emissions — the largest source. The rest comes from generating electricity and industrial manufacturing, as well as commercial, residential and agricultural uses.

All fuels are measured against a baseline pollution standard. If a fuel falls above or below the baseline, it generates a credit or deficit that other producers can buy and sell to meet the target.

It’s up to fuel producers to figure out how to meet the goal, whether by changing production methods, using ethanol or electric vehicles for transportation or buying credits on the market.

After the rule’s initial adoption, out-of-state refiners and ethanol companies were among those who sued, arguing that transporting the fuels into California alone made them less competitive against in-state producers. They argued the law unconstitutionally limits interstate commerce.

The U.S. Supreme Court let stand a 2013 appeals court decision upholding the fuel standard.

Opponents continue to challenge the state’s authority to regulate out-of-state production. Oil firms are also trying to block a similar standard enacted in Oregon, the only other state with a clean fuel standard.

Friday’s move to restore California’s program is not related to Volkswagen drawing international attention for violating separate federal and state rules that regulate emissions from vehicles.

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    Community Meeting: Our Vision of the Northern Waterfront

    Repost from the Bay Area Refinery Corridor Coalition (BARCC)
    [Editor:  For Contra Costa County background (beware of spin), see the 124-page 2014 report, “Revitalizing Contra Costa’s Northern Waterfront.”  For the County’s Power Point overview (great maps and aerial photos), see “Northern Waterfront Economic Development Initiative.”  – RS]

    Community Meeting: Our Vision of the Northern Waterfront

    Organized & Sponsored by Bay Area Refinery Corridor Coalition, and the Sierra Club SF Chapter.
    RSVP at http://northernwaterfrontlunchrsvp.eventbrite.com
    Northern Waterfront Area
    Community Meeting: Our Vision of the Northern Waterfront – Saturday, August 15, 2015 at 10:00am-1:00pm, Nick Rodriguez Community Center Theater, 213 F St, Antioch, California 94509

    If you live in Contra Costa County, you may have heard of a massive effort called the Northern Waterfront Economic Development Initiative, which aims to re-­industrialize the coastline along the Carquinez Strait. However, it’s more likely you might not have heard about it, since it has been operating mostly behind closed doors, with minimal input from local residents.

    Community Meeting: Our Vision of the Northern Waterfront – Saturday, August 15, 2015 at 10:00am-1:00pm, Nick Rodriguez Community Center Theater, 213 F St, Antioch, California 94509  RSVP for lunch reservation.
    Launched in 2013, this initiative is an economic development revitalization “framework” led by Supervisors Federal Glover and Mary Piepho, and targets the towns of Hercules, Martinez, Concord, Pittsburg, Antioch, and Oakley, as well as unincorporated Rodeo, Crockett, Port Costa, Mountain View, Vine Hill, Clyde and Bay Point.Contra Costa is already the second most industrialized county in California, behind Los Angeles. Despite this dubious status, the Northern Waterfront initiative is a 20­ year plan to permanently transform our county and bring even more industry here. The plan has no targets for renewable energy growth, no caps on cumulative emissions and no goals for attracting sustainable businesses. When county staff were recently asked about the “green” industries they planned to develop, the only example they could give was carpet recycling ­­ while this is technically “green” for the consumer, it leaves the dirt and chemicals in our communities.The Northern Waterfront initiative has failed to include voices of residents living in the affected industrial areas, and has instead chosen to focus on institutional “stakeholders” like local government and business associations. Instead of working with the community, the Northern Waterfront initiative treats us as an obstacle to be dealt with. Their “Competitive Assessment of Strengths, Weaknesses, Opportunities and Threats” (9/30/13) admits as a “weakness” that Residential land uses are incompatible with the needs of industry. Citizens in the area may protest more industry because their presence generally increases deleterious effects on the community such as traffic, noise and air pollution.In addition to affecting human health and safety, the Northern Waterfront Initiative also puts our coastline, water and natural environment at risk. For example, the plan itself is focused on water intensive businesses! It includes a feasibility study to dredge the Carquinez Strait from Richmond to Stockton, from 35 feet to 38 feet. Funded by Contra Costa County, Western States Petroleum Association and the Port of Stockton, the dredging will allow oil barges to fill to capacity and bring even more oil into the Bay. Dredging has a number of hazards: it can increase salinity into the Delta (a shortsighted move during a drought), and it would release a century of buried toxins into our Bay.The Northern Waterfront initiative has projected various numbers of jobs created — one 20-year prediction was 5,000 jobs, another was 18,000 jobs. But what kind of jobs? And will workers want to live in an even more unhealthy and highly industrialized community? The Northern Waterfront initiative is not a plan to transition away from the old fossil fuel economy, but just more “business as usual,” despite the well-documented fact that the transition to renewable energy is an opportunity for job growth. Stanford engineer Mark Jacobson has established that if California transitioned to 100% renewable energy, it would create over 450,000 jobs statewide (Source: www.solutionsproject.org).Please join us at August 15th community meeting where a representative and consultant of the county will be presenting the Initiative, and county and local gov’t officials have been invited. More importantly, join us to share our vision beyond fossils fuels.

    We need your support in letting people know about this event. To access event flyers and other media tools, you can use for a Facebook post, email blast or newsletter insert, please go to: http://bit.ly/NWMedia. We appreciate any efforts you can make to get the word out.For more information, please call 925-709-4295 or email info@bayarearcc.org
    Thank you,
    Members of the Bay Area Refinery Corridor Coalition
    Lunch will be served, so advance registration is required
    Please register here: http://northernwaterfrontlunchrsvp.eventbrite.com/

    OR join on Facebook at https://www.facebook.com/events/809066505881284/

    If you need/can offer a ride from BART Pittsburg/Bay Point or need to carpool,
    sign up here http://www.groupcarpool.com/t/4p8swn

    To access event flyers and other media tools, please go to:
    http://bit.ly/NWMedia

    Two-Futures ... Which-one-will-you-choose?
    Community Meeting: Our Vision of the Northern Waterfront – Saturday, August 15, 2015 at 10:00am-1:00pm, Nick Rodriguez Community Center Theater, 213 F St, Antioch, California 94509

     

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      Can state cut gasoline use in half in 15 years?

      Repost from the CalMatters.org
      [Editor:  This article also appeared in the 8/9/15 San Francisco Chronicle.  – RS]

      Can state cut gasoline use in half in 15 years?  Probably not

      By Kate Galbraith, August 5, 2015
      Mary Serrano gets instructions on the Chevy Spark PHOTOGRAPH BY Carl Costas for CALmatters

      One sunny Saturday in Stockton, Mary Serrano climbed into the driver’s seat of a bright-red, all-electric Chevrolet Spark. A retiree who normally drives a 20-year-old Toyota Camry, she was curious about the new technology on display at the local fairground.

      “I feel like I’m going to outer space,” she said giddily, as a company representative prepared to explain the controls.

      But after the excitement of the test drive, reality set in. The Camry, which had to be fixed after failing a smog test, will keep its place at her Stockton home. An electric car seems out of reach, despite the availability of rebates.

      “For the moment, I don’t have the money to buy it,” she said by phone, a few months after the fairground event. “Maybe later in life.”

      Her situation suggests that for all the allure of emissions-free vehicles, getting Californians to adopt them will take time. That in turn creates challenges for slashing gasoline and diesel use, a goal state leaders are championing as part of their battle against climate change. A bill that has passed the state Senate and awaits a vote in the Assembly seeks to halve the amount of petroleum used in motor vehicles by 2030. It will be difficult to accomplish in such a short period.

      “If we’re talking about transportation petroleum use, then the goal probably isn’t possible,” said John German, a Michigan-based senior fellow with the International Council on Clean Transportation. A key problem, he said, is that people hold onto cars and trucks for a long time, an average of more than 11 years for American cars.

      The bill has the backing of Gov. Jerry Brown, who earlier this year called for the state to cut petroleum use in cars and trucks by “up to 50 percent.” Senate Bill 350 contains an unequivocal 50 percent target.

      “I wouldn’t set forth on this pathway if I believed that the targets were unrealistic,” said Senate leader Kevin de León, D-Los Angeles, the bill’s powerful co-author, in a recent interview.

      Other parts of the legislation call for electric utilities to use 50 percent renewable energy by 2030 and for buildings to become twice as energy efficient.

      “We should be careful when we set round numbers like 50-50-50. Why 50?” said Eloy Garcia, who lobbies for the Western States Petroleum Association, in testimony before an Assembly committee in July. “I know they’re nice round numbers, but we should be careful about why we’ve picked those numbers.”

      The bill would take gasoline use in the state back to the 1960s, a time when California’s population was close to half of what it is today. It would not only help cut greenhouse gas emissions, a priority for the state, but also reduce the fine particles and smog-forming gases that contribute to unhealthy air above some California cities, including Los Angeles, Bakersfield, and Fresno.

      “The primary driver of this target was air quality,” Stanley Young, a spokesman for the Air Resources Board, the state agency overseeing air quality and climate change policy, wrote in an e-mail.

      The ARB would oversee the programs, creating a point of controversy because industry groups perceive it as high-handed, even as environmentalists cheer it on. Petroleum lobbyists and other opponents want elected legislators to plan how the goals will be met and not the appointed air board officials.

      Currently, trends are moving in the wrong direction. Gasoline and diesel sales are ticking up, the sign of a surging economy. The number of miles traveled by vehicles on California highways — a crucial metric for determining whether Californians are getting out of their cars and onto bikes, sidewalks or public transportation– is also rising.

      But the technology exists to halve petroleum use, as German and others point out. If everyone suddenly began driving emissions-free electric cars, such as the one Serrano tried out, California would easily meet its target. Driven by government fuel-economy and emissions standards, even cars that run on petroleum will be made of lighter, more fuel-efficient materials in the future.

      These coming changes will be dramatic, even if they do not end up being enough to halve petroleum use in 15 years. German’s organization, the International Council on Clean Transportation, estimates that recent federal fuel-economy standards could cause greenhouse gas emissions from light-duty vehicles nationwide to fall 28 percent by 2030 compared to 2015.

      Jeffrey Greenblatt, a scientist at the Lawrence Berkeley National Laboratory, estimates that by 2030, a number of transportation policies already in existence will enable the state to cut petroleum use by cars and trucks to about 70 percent of their 2014 level. Besides federal fuel-economy standards, these include support for public transit and a state goal of having 1.5 million emissions-free vehicles by 2025.

      Another way the state is trying to cut petroleum is by encouraging the use of biofuels like ethanol or renewable diesel, provided they are formulated to be as environmentally friendly as possible. (Renewable diesel is made from fats or vegetable oil and specially refined.) At a pump in Redwood City operated by Propel Fuels, several customers opted for 85 percent ethanol rather than the ordinary gasoline available nearby, although helping the environment was not their primary motive.

      “It’s cheaper,” said Donald Rainer of Menlo Park, whose flex-fuel GMC Yukon takes both gasoline and 85 percent ethanol. His main complaint was about refueling stations: “They don’t have enough of them around.”

      For potential buyers of electric cars, too, costs are key. Many plug-in vehicles remain expensive, though prices have been falling and the state subsidizes them in various ways. The cars are limited in how far they can go without recharging, but that problem is diminishing as battery technology improves. Some in the auto industry wonder whether key incentives, such as allowing zero-emissions vehicles into the high-occupancy vehicle lanes on major roads, will remain in place if electric cars flood the roadways.

      As improved fuel-efficiency allows Californians to use less gasoline, then prices at the pump may fall, according to Darwin Hall, professor emeritus of economics at California State University, Long Beach, depending on whether refiners adjust their capacity.

      However, in the near-term, some climate policies are causing the price of gasoline to rise. The state’s cap-and-trade program, which sets limits on the amount of greenhouse gases that fuel distributors, refineries and other large polluters can emit, has increased gasoline prices by roughly a dime a gallon this year, economists estimate.

      Republican lawmakers fear that SB 350 will cause job losses and economic damage. “What are my constituents going to do if we cut petroleum by 50 percent but they are still using cars that require petroleum? Will they all be required to buy new cars?” asked Sen. Jean Fuller, R-Bakersfield, during a floor debate over the bill. Her colleague, Sen. Jeff Stone, R-Temecula, described it as “coastal elitism at the worst.”

      The bill is expected to have a more difficult time in the Assembly than in the Senate, where it passed the Senate with the support of all but two Democrats: Sen. Cathleen Galgiani of Stockton and Sen. Richard Roth of Riverside. The Assembly contains more moderate Democrats who have historically been friendly to the oil industry, which has launched a television ad dubbing the bill the “gas restriction act of 2015.”

      The ads target a select group of lawmakers and are running on web sites in their respective districts, said Beth Miller, a spokeswoman for the industry group called California Drivers Alliance.

      “It is a method of communicating to legislators about an issue we think is of concern to their constituents,” Miller said.

      Sen. de León emphasized that fossil fuels were not going away. Nor, he said, would everyone need to immediately buy an electric car or hybrid. (In his official capacity, de León is chauffeured in a Chevrolet Suburban. For personal use, he leases a Chevrolet Impala and said he aspires to a hybrid.) Establishing targets, he said, is vital to encouraging California down the path toward clean energy, but the policy would not result in banning or rationing gasoline.

      “If we don’t meet this goal,” de León said, “no one’s going to jail.”

      Laurel Rosenhall contributed reporting.

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