low-carbon transportation for oregon john galloway program director oregon environmental council...
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Low-Carbon Low-Carbon Transportation for Transportation for
OregonOregon
John GallowayJohn GallowayProgram DirectorProgram Director
Oregon Environmental CouncilOregon Environmental CouncilPresentation to JELL Symposium 10/10/08
Oregon Environmental Oregon Environmental CouncilCouncil• Celebrating our 40th
anniversary this year• We work to:
o Slow global warmingo Protect kids’ health from toxic
pollutiono Clean up Oregon’s riverso Promote healthy food and farmso Build a sustainable economy
Fuels Policies: CurrentFuels Policies: Current
• Renewable Fuels Standardo Statewide standard adopted 2007,
currently in roll-outo E10 (10% ethanol) and B2 / B5 (biodiesel
blends)o Portland just celebrated one-year
anniversary of its RFSo Federal RFS: 36 billion gallons by 2022
• Financial Incentives for Biofuels Feedstock and Fuel Producerso State: Feedstock incentives, BETC,
property tax exemptionso Federal: loan guarantees, blender credits
Broader Fuel Policies: Broader Fuel Policies: FutureFuture
• Low-Carbon Fuels Standardo Reduce carbon in transportation
fuels 10% by 2020
• Including transportation fuels in Carbon Cap and Trade
• Most focus to date has instead been on advanced vehicle technology (e.g. plug-in hybrids, EVs, fuel cells)
Attempted Policy: Clean Attempted Policy: Clean Cars StandardCars Standard
• Also referred to informally as the “tailpipe emissions standard” (for GHGs)
• Would limit GHG emissions from cars• Adopted by West Coast states + 12
other states + interest from 3 additional states; represent over 40% of new car market
• Challenged in courts by auto manufacturers on basis of federal preemption under Clean Air Act (EPA authority regulating GHGs)
• Auto makers make administrative claims that standard is too costly to meet
Attempted Policy: Clean Attempted Policy: Clean Cars StandardCars Standard
• Follow-on suit by California, joined by other 14 states that adopted the standard, based on undue harm in delay of waiver
• Dec ’07: EPA indicates intent to deny waiver, formally denied Feb ’08
• CA + 16 states (including OR) file suit challenging merits of EPA decision
• Congressional inquiry finds EPA administrator, Stephen Johnson, ignored unilateral recommendations from his legal and technical staff to grant CA’s waiver
Low-Carbon Fuel StandardLow-Carbon Fuel Standard(LCFS)(LCFS)
• Reduce the average fuel carbon intensity of transportation fuels by 10 percent by year 2020
• Spurs providers of transportation fuels to bring more climate-friendly fuels to market
• Adopted by CA in Executive Order and implemented as part of its Global Warming Solutions Act
• CA rules adopted this year, in effect 2009, phase-in period between 2010 and 2019
• Adopted in British Columbia; Washington may consider in its upcoming legislative session
• OR likely to consider in Global Warming legislation
LCFS: AdvantagesLCFS: Advantages
• Substantially reduce global warming pollution and create a sustainable and growing market for cleaner fuels
• Cleaner production and less air pollution
• Follow a different fuels path than petroleum industry is setting, which includes highly polluting domestic resources such as fuel from coal-to-liquids, tar sands and oil shale
Alternatives? (Alberta Tar Alternatives? (Alberta Tar Sands)Sands)
LCFS: ChallengesLCFS: Challenges
• Need for interim milestones to drive technological innovation and development of lower-cost solutions
• Accounting for land use changes: direct and indirect
• Modeling variety of fuel sources to accurately determine carbon intensity
• Concerns about regulatory certainty
Transportation Policies Transportation Policies OverviewOverview
• 2009 legislation may consider funding upgrades to infrastructure, demand-side pilot programs, and climate change in planning process
• Transportation sector accounts for nearly 40% of Oregon’s GHG emissions
• Need to reduce vehicle-miles traveled
Transportation Policies Transportation Policies OverviewOverview
• Revenueo Gas tax revenues and vehicle fees
dedicated by OR Constitution (Article IX, section 3a) to public highways, roads, and streets (with limited exceptions)
o Example of new mechanisms: New car title fees, increasing gas tax and registration fees, increase lottery revenue portion by 7%, allocating federal Surface Transp. Program funds to transit, 0.1% increase in employer payroll tax
Transportation:Transportation:Usage-based FeesUsage-based Fees
• PAYD: Pay As You Drive Insurance• “Per mile” user fees
o Could replace gas taxo ODOT pilot program demonstrated system is
inexpensive but not ready for commercial use
o May raise privacy concerns
• Congestion pricing• Typically applied in high-traffic corridors
and/or inner urban congestion zones• Carrots vs. sticks: untapped incentives?
OEC’s Next Steps OEC’s Next Steps
• Secure a Low-Carbon Fuel Standard in Oregon and establish a “West Coast low-carbon fuels corridor”
• Promoting fuel cap & trade as part of Western Climate Initiative and Oregon policy
• Ensure Renewable Fuels Standard remains in place and achieves intended goals
• Ensure passage of environmentally sound transportation policies in 2009 session
Extra Extra SlidesSlides
Diesel Gasoline
~57 billion ~110 billion
~2 million ~4 million
~720 million ~1.4 billion
Gallons consumed in U.S. in 2002
Gallons consumed in Oregon each year
Gallons consumed in Oregon each day
Markets for Diesel and Markets for Diesel and GasolineGasoline
Source: SeQuential Biofuels