Category Archives: Cap-and-trade

California billionaire fights to keep tar-sands oil out of state

Repost from The San Francisco Chronicle
[Editor:  See the full report, West Coast Tar Sands Invasion.  See Anthony Swift’s NRDC Blog for summary details.  See also the ForestEthics press release.  – RS] 

Billionaire fights to keep tar-sands oil out of state

By David R. Baker, April 29, 2015
Tom Steyer hopes  to block Canada oil from the state. Photo: David Paul Morris, Bloomberg
Tom Steyer hopes to block Canada oil from the state. Photo: David Paul Morris, Bloomberg

Billionaire environmentalist Tom Steyer has a new mission

— keeping oil from Canada’s tar sands out of California.

Steyer’s NextGen Climate organization released a report Tuesday warning that an “invasion” of tankers and railcars carrying crude from the oil sands could soon hit West Coast refineries, which currently process very little Canadian oil.

Steyer, a major Democratic donor who quit his hedge fund to focus on fighting climate change, has risen to prominence as a vocal opponent of the Keystone XL pipeline extension, which would link the oil sands to American refineries on the Gulf Coast.

A train carries crude oil through Kansas City, Mo., in 2014. Environmentalist Tom Steyer’s NextGen Climate organization warns that railcars carrying oil from Canada could soon hit West Coast refineries. Photo: Curtis Tate, McClatchy-Tribune News Service
A train carries crude oil through Kansas City, Mo., in 2014. Environmentalist Tom Steyer’s NextGen Climate organization warns that railcars carrying oil from Canada could soon hit West Coast refineries. Photo: Curtis Tate, McClatchy-Tribune News Service

But Tuesday’s report, prepared with the Natural Resources Defense Council and a coalition of other environmental groups, notes that the oil industry is pursuing other pipeline routes that would carry tar-sands petroleum to Canada’s Pacific Coast. From there, it could be shipped to refineries in California and Washington. In California, companies have proposed five new terminals for receiving oil shipped by rail — another potential means of entry. California’s policies to fight climate change discourage but don’t prevent the use of oil-sands crude.

“Keystone is not the only way the tar sands threaten our country,” Steyer said Tuesday at an event in Oakland, releasing the report. “The owners of the tar sands are always looking for other routes to the world’s oceans and the world’s markets.”

Steyer and other environmentalists have made blocking Keystone a rallying cry in the fight against global warming, since extracting hydrocarbons from the oil sands releases far more carbon dioxide into the atmosphere than other forms of oil production. And unlike common oil, the diluted bitumen (a tar-like substance extracted from the sands) sinks in water, making spills from pipelines and tankers difficult to clean.

“It is shockingly toxic, it is extremely nasty and it takes forever to clean up,” Steyer said. “To end the risk from tar-sands oil once and for all, we need to move beyond oil to a clean energy future. Luckily, this is the kind of leadership California excels at.”

The oil industry, and the Canadian government, call the oil sands a reliable source of oil from a friendly ally. And industry representatives often note that California’s dependence on imported oil has grown in recent years, in large part because production in Alaska — once one of California’s biggest suppliers of crude — has dropped.

Steyer has devoted a sizable chunk of his personal fortune, estimated at $1.6 billion, to backing political candidates who support action on climate change and targeting those who don’t, spending $73 million in the last election cycle. He said Tuesday that he has not yet decided whether to pay for an advertising campaign against bringing oil-sands crude to the West Coast.

“I’m not 100 percent sure,” he said. “Exactly how we fight it, I don’t think we’ve determined.”

Crude from the tar sands makes up a tiny fraction of the oil processed in California refineries — less than 3 percent, according to the report. And while the amount of oil shipped into the the Golden State by rail has soared in recent years, most of that petroleum comes from North Dakota and other states where hydraulic fracturing, or fracking, has produced a glut of crude.

But oil companies have proposed two pipeline projects that would link the oil sands to the Pacific Ocean, both of them traveling through British Columbia. If built, they could lead to an additional 2,000 oil tankers and barges moving up and down the West Coast each year, according to the report. The rail terminal projects proposed in California could raise the amount of oil-sands crude processed in the state each day from the current 50,000 barrels to 650,000 barrels by 2040.

However, that outcome is hardly certain.

A California policy known as the low carbon fuel standard requires oil companies to cut by 10 percent the amount of carbon dioxide associated with each gallon of fuel they sell in the state, reaching that milestone by 2020. In addition, the state’s cap-and-trade system forces refineries to cut their overall greenhouse gas emissions. Neither policy specifically prevents refineries from using oil-sands crude, but both give oil companies a powerful incentive to use other sources of petroleum.

Anthony Swift, one of the report’s authors, said California needs to adopt more stringent emissions targets to keep out crude from the oil sands.

“These policies are a very good start,” said Swift, of the Natural Resources Defense Council. “We need to get more robust targets — for both the low carbon fuel standard and the cap — to signal to the industry that California is not going to be an option for tar-sands refining.”

David R. Baker is a San Francisco Chronicle staff writer.

Ontario confirms it will join Quebec, California in carbon market

Repost from San Francisco Chronicle, SFGate

Ontario backs California’s carbon market

By David R. Baker, April 13, 2015 3:59 pm

Ontario plans to join California’s cap-and-trade market for reining in greenhouse gases and fighting climate change, the Canadian province’s premier, Kathleen Wynne, said Monday.

If the country’s most populous province follows through, it would greatly expand the size of the market, which California launched on its own in 2012. Quebec joined last year.

“Climate change needs to be fought around the globe, and it needs to be fought here in Canada and Ontario,” Wynne said.

Cap and trade puts a price on the greenhouse gas emissions that the vast majority of climate scientists agree are raising temperatures worldwide.

Companies in participating states and provinces must buy permits, called allowances, to pump carbon dioxide and other heat-trapping gases into the air. The number of permits available shrinks over time, reducing emissions. Companies that make deep cuts in their emissions can sell spare allowances to other businesses.        California officials always wanted other states and provinces to join the market. In 2008, six other states and four Canadian provinces (including Ontario and Quebec) agreed in principle to create a carbon market, one that could possibly expand to cover all of North America.

But one by one, California’s potential partners dropped out, and congressional efforts to create a national cap-and-trade system collapsed in 2010. California officials decided to go it alone.

Wynne gave few details Monday about Ontario’s effort. Instead, she signed an agreement with Quebec Premier Philippe Couillard to   collaborate on crafting Ontario’s cap-and-trade regulations. For Ontario to join the market, officials with the California Air Resources Board would need to certify that the province’s cap-and-trade rules mesh with California’s. Gov. Jerry Brown would also have to approve.

Brown on Monday welcomed Wynne’s announcement.

“This is a bold move from the province of Ontario — and the challenge we face demands further action from other states and provinces around the world,” Brown said. “There’s a human cost to the billions of tons of carbon spewing into our atmosphere, and there must be a price on it.”

Much like California, Ontario has a significant clean-tech industry, estimated   to employ about 65,000 people.

While Quebec and now Ontario have pursued cap and trade, British Columbia chose another route to pricing greenhouse gas emissions. The province in 2008 established a carbon tax on fuels, using the revenue to cut other taxes.

Alberta, home to Canada’s controversial oil sands, also has a carbon   tax on large emitters, although critics consider it too limited and low to be effective. Washington Gov. Jay Inslee last year proposed a carbon tax on heavy emitters, only to meet with resistance from both political parties.

Washington Gov. Inslee: Make polluters pay for transportation projects

Repost from The Seattle Times
[Editor: For details, see the Governor’s website: Inslee announces slate of proposals to curb pollution, transition Washington to cleaner sources of energy.  This week saw dramatic action on the part of two US governors.  See also NY Gov. Cuomo bans fracking.  – RS]

Gov. Jay Inslee proposes a 12-year, $12 billion transportation plan, saying fees on the state’s biggest polluters will help fund improvements.

By Mike Lindblom, Dec. 16, 2014

 Work continues on the Highway 520 bridge project, looking west toward Seattle from Medina. The new bridge is expected to be done in spring 2016; the existing bridge will be removed. The governor’s proposal includes $1.4 billion to extend a new six-lane 520 to Interstate 5.
Work continues on the Highway 520 bridge project, looking west toward Seattle from Medina. The new bridge is expected to be done in spring 2016; the existing bridge will be removed. The governor’s proposal includes $1.4 billion to extend a new six-lane 520 to Interstate 5. | Ellen M. Banner / The Seattle Times

After two years of watching gas-tax increases tank in the Legislature, Gov. Jay Inslee proposed Tuesday to take a new approach: Charge major polluters for the right to emit carbon.

Inslee’s plan, featuring a “cap-and-trade” system, would generate $400 million a year, he said, to cover nearly 40 percent of his $12 billion, 12-year transportation improvement plan. The remainder would come from bond debt, existing gas taxes, tolls and an assortment of vehicle fees.

The new six-lane Highway 520 bridge would be completed all the way to Interstate 5, using $1.4 billion, while the state would abandon the idea of tolling the I-90 Mercer Island floating bridge. An additional $1.3 billion would widen Interstate 405 from Bellevue to Renton.

Several projects have been on the drawing board for years, and even failed in a regional ballot in 2007.

Ferry riders would see a two-year freeze in fares, while a fourth ferry would be built to join the new Tokitae and two others under construction.

“We can clean our air and water at the same time we are fixing our air and our roads,” Inslee said in Medina, overlooking the 520 construction site. “It is indeed a twofer.”

MORE . . .

 

NPR Science Friday: Climate Deal or Not, Fight Against Global Warming Has Begun

Repost from NPR Science Friday
[Editor: In this 21-minute audio report, Science Friday host Ira Flatow interviews David Biello, Editor, Environment & Energy, Scientific American; Kate Ricke, Fellow, Carnegie Institution for Science, Stanford University; and Robert Stavins, Professor, Environmental Economics & Director, Harvard Project on Climate Agreements, Harvard Kennedy School.  After you listen, CHECK OUT THE EXCELLENT links at bottom of this story.  – RS]

Climate Deal or Not, Fight Against Global Warming Has Begun

Ira Flatow, December 5, 2014

The United Nations climate meetings began this week in Peru, a dress rehearsal of sorts for treaty talks in Paris next year. But whether world leaders forge a deal or not, Scientific American‘s David Biello and environmental economist Robert Stavins say the fight against climate change has already begun—at the state and local level, and in the private sector. Last year, for example, new solar plants outpaced coal installations in the U.S., and carbon-trading schemes across state and national borders have already begun.

Produced by Christopher Intagliata, Senior Producer
Guests
  • David Biello
    Editor, Environment & Energy
    Scientific American
    New York, New York
  • Kate Ricke
    Fellow, Carnegie Institution for Science
    Stanford University
    Stanford, California
  • Robert Stavins
    Professor, Environmental Economics
    Director, Harvard Project on Climate Agreements
    Harvard Kennedy School
    Cambridge, Massachusetts