(Southern California Public Radio)  

Renewable Fuels Industry Says  

It's a Growing Part of California Economy

If the oil industry can have a study boasting its economic importance, then the renewable fuels industry can, too.  

On Thursday, the Fuels America Coalition released an analysis of the economic footprint of the sector that includes biodiesel and ethanol. It came just days after the Western States Petroleum Association released a study of its contributions to the California economy. 

The Fuels America study says that in California, the renewable fuels industry:

•        Generates $12.7 billion in economic output annually
•        Supports 59,665 jobs and $3.7 billion in wages
•        Generates $467.6 million per year in state tax revenue 

It's hardly fair to compare these numbers to the oil industry's. It supports more than 100,000 jobs in Los Angeles County alone.

But L.A.-based biodiesel marketer Joe Gershen says the renewable fuels sector is growing. At least 10 factories in California produce biofuels, including plants in Coachella, Bakersfield and San Diego, with more on the way.

"A lot of places where these plants are are in low-income areas with high unemployment," said Gershen, who also serves as vice chairman of the California Biodiesel Alliance.  "So these are creating very good-paying stable jobs in places that they really are needed."

The renewable fuels industry has been pushing to protect federal and state renewable fuel standards, which some parts of the oil industry have fought.

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http://www.scpr.org/blogs/economy/2014/04/25/16462/renewable-fuels-industry-says-it-s-a-growing-part/

CARB Resets Clock on Revised ADF Proposal

Second Annual Clean, Low Carbon Fuels Summit

On April 2nd, the Clean, Low Carbon Fuels Summit brought together a diverse range of participants from the state's various alternative fuel sectors, along with state agency staff and state legislators, for a second annual conversation hosted by CALSTART in coordination with Environmental Entrepreneurs (E2), the California Electric Transportation Coalition (CalETC), and the California Natural Gas Vehicle Coalition (CNGVC).  

The afternoon event provided a broad overview of the considerable successes and remaining challenges of low carbon fuels and the policies that support them, with a view toward the future. There was widespread agreement on the importance of the continued success of California's Cap and Trade and Low Carbon Fuel Standard (LCFS) programs and on the excellence and unparalleled leadership of our state's staff at the helm. Chief among the many who made that point was AB 32 author, Senator Fran Pavley, who praised the "unbelievably good experts," between the Air Resources Board (CARB), the Energy Commission (CEC), and even the Public Utilities Commission (PUC), that implement these and related policies.  

FUNDING OPPORTUNITIES

The financially incentivizing effect of LCFS and the value of the CEC's Alternative and Renewable Fuel and Vehicle Technology funding program under AB 118, which provides $100 million per year for low carbon transportation, were other areas of broad agreement.  And importantly, there were some new developments since last year's Summit on possible ways to meet the significant financial challenges associated with scaling up to the volumes required going forward. AB 2390, which would establish a Green Credit Reserve "to purchase credits generated pursuant to the Low Carbon Fuel Standard (LCFS) regulation and the federal Renewable Fuel Standard (RFS) from developers of renewable fuel production facilities in California for the purpose of supporting the financing and construction of these facilities" was discussed. Also discussed was AB 1992, which would authorize "the Air Resources Board (ARB) to require fuel suppliers subject to the Low Carbon Fuel Standard (LCFS) to include specified minimum percentages of very low carbon fuel, as defined."

Assemblywoman Nancy Skinner, Chair of the Committee on Budget, told the group she is looking to the transportation sector, as the highest GHG emitter, for suggestions as her committee vets proposals in the Governor's budget for the $850 million of Cap and Trade proceeds to be spent on low carbon projects ($200 for clean fuels and clean transportation). She also said "I love being in this space and facing this challenge, and I hope we do get it right."

MOVING BEYOND 2020 TARGETS

Presenting the big picture for the state's key principals, Richard Corey, Executive Officer, CARB, in his opening keynote cited significant reductions in diesel particulate emissions; exposure to ozone; and GHGs through AB 32 and a range of strategies. He said that California is on target to meet its 2020 goals. Peppering his talk with "we need to do better," he said that, because the case for climate change is stronger than ever, it's time to think about a mid-term plan involving a range of strategies that reduce consumption, provide cleaner traditional fuels, cleaner technologies, and strong incentives. Corey called for information, advice, and expertise from attendees to aid the agency's re-adoption of LCFS over this year and its efforts to "push beyond 10% and push beyond 2020."

Pointing to transportation's critical role, he mentioned the Update to the Scoping Plan and the Sustainable Freight Strategy documents, which detail technology, fuel, and logistic opportunities for further reductions and collaborations with other agencies toward goals well beyond today's standards. (See the Policy section below for information on CARB's May 1st Research Seminar on how California can meet the 2050 targets for greenhouse gas (GHG) emissions -- 80% below 1990 levels).

A BOX OF CHOCOLATES

Michael Waugh, Chief, Transportation Fuels Branch, CARB, stressed the success of LCFS as a performance-based program that has prevailed in lawsuits because "the courts realized the value of the LCFS and the investments that have been made." Referring to the many fuel providers who are constantly seeking low carbon pathways, he compared clean low carbon fuels under LCFS to a box of chocolates (because you never know what you are going to get). Agreeing that it should remain a box of assorted chocolates, the panelists almost all chimed in in favor of an all-of-the-above strategy for low carbon transportation in the state even when asked specifically to make the case for why their fuel is best.  

FUELS UNDER THE CAP

In public statements, Richard Corey is strong on the defense of his agency's programs. Just as CARB knew that lawsuits would be a part of the landscape of their low carbon programs and prepared to fight and win them, at the Summit he said that fuels coming under the cap was an element that was laid out "from the ebeginning." He added that he thinks that petroleum companies may be purchasing advance allowances on the expectation of meeting their obligations under that program, which will begin in 2015 when they join utilities and industry as regulate parties. Speaking at the Navigating the American Carbon World conference this March in San Francisco, Corey cited his more than ten years of experience working with petroleum companies and said that they will comply. He added that that they have too much to lose not to comply and stressed that, as always, CARB will implement and enforce the program.

Addressing a bottom-line issue, Senator Fran Pavley stressed the need for success stories to counter common misconceptions, stating that the rising fuel costs of low carbon programs threatened by the petroleum industry will not compare to the real price we will pay for not cleaning our air and tackling climate change "if we don't step up and do our job."

 REGULATORY AND POLICY ISSUE UPDATES

CALIFORNIA ENERGY COMMISSION (CEC): AB 118 FUNDING