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Steinberg Kills Bill That Sought to Delay Cap-and-Trade on Fuels

Mobile billboard against the "hidden gas tax." Photo via CA Drivers Alliance Twitter

Mobile billboard against the “hidden gas tax.” Photo via CA Drivers Alliance Twitter

The misinformation campaigns trumpeting an imminent “hidden gas tax” in California lost a battle with the defeat of Assemblymember Henry Perea’s bill, A.B. 69, which was designed to delay application of cap-and-trade to the fuels industry for three years.

Fuel companies have already begun participating in the state’s cap-and-trade auctions, buying pollution credits that they can use to help them meet the greenhouse gas emission cap set by the state. Emission caps will not apply to the fuel industry until this coming January, but they have had years to prepare for it.

Senate President Pro Tem Darryl Steinberg sent a letter to Perea [PDF] explaining his decision not to let A.B. 69 go forward. The bill may not have had much of a chance of passing anyway, but this settles the question without the Senate or Assembly having to take it up in the final few days of the legislative session.

A.B. 69 was originally a bill about water quality, and had been considered and passed in the Assembly as such, when at the last minute Perea completely rewrote it, in what’s called a “gut and amend.” At that point, it was in the Senate, where it would have had to pass out of several committees and then pass with at least a two-thirds vote on the Senate floor before the Assembly could take it up.

Steinberg killed it in the Rules Committee. In his letter to Perea, he wrote that “bringing non-stationary fuels under the cap is not an unforeseen issue that demands legislation which sidesteps the democratic process.” And “a measure of this importance should not be considered in the final weeks of a two-year session.”

Read more…

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Steinberg: CA Cap-and-Trade Must Fund Transit-Oriented Affordable Housing

Negotiations over the California state budget are producing dueling proposals on how best to spend revenue from the state’s cap-and-trade program.

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Senator Steinberg proposes affordable housing as a greenhouse gas reduction strategy. Photo courtesy TransForm.

While Governor Jerry Brown continues to call for a third of the cap-and-trade funds to go to CA high-speed rail, Senate President ProTem Darrell Steinberg last week expanded upon his alternative proposal to spend a larger share of the revenue on affordable housing and transit at the local and regional level.

State cap-and-trade funds are collected under the California Global Warming Solutions Act of 2006, A.B. 32. The law provides a way for companies to meet a state-mandated cap on greenhouse gas emissions by buying “pollution credits” produced when others exceed emissions reductions. Estimates vary on how much revenue the program will generate, but it could produce billions each year between now and 2020.

Standing in front of an active construction site for new housing units near Oakland’s MacArthur BART station last Thursday, Steinberg called for permanent sources of funding for affordable housing, mass transit, and sustainable communities development. The Senator argued that  California is facing a “catastrophic funding crisis” as affordable housing bonds run out, and noted that the transportation sector is the state’s biggest contributor to greenhouse gas emissions.

“Californians are logging more vehicle miles annually than ever before,” Steinberg said.

Behind him, a forklift raised a load of lumber high up in the air, with an attached sign reading, “At least 972 lbs of CO2 emissions reduced every day.” That’s the amount by which  the housing project, which will provide 624 housing units next to the BART station, is estimated to reduce greenhouse gas emissions compared to other housing developments. Of those apartments, 108 will be leased at below-market rates. Read more…

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CA Transportation Choices Summit Tackles Policy Issues

The California Transportation Choices Summit, held in Sacramento this week, was an opportunity for sustainable transportation and public health advocates to spend the day learning about current state policies and legislation in the works to change them.

Christopher Cabaldon, Mayor of West Sacramento, discusses bike infrastructure on a pre-summit bike tour along the Sacramento River. Photos: Melanie Curry

This year’s summit was titled “2014: A Year of Opportunity.” The “opportunity” comes in the form of new funds from cap-and-trade and current discussions in the legislature about how to spend that money. As Streetsblog has reported, these funds are required to be spent on reducing greenhouse gas (GHG) emissions, which could include projects that encourage walking, bicycling, and transit.

The annual summit is hosted by TransForm and a long list of partners across the state including ClimatePlan, MoveLA, Circulate San Diego, the Safe Routes to Schools National Partnership, National Resources Defense Council, and the California Pan-Ethnic Health Network. In addition to discussing current policies, the learning day prepared attendees for TransForm’s “Advocacy Day,” in which participants meet with State Assembly members and their staff to talk about the issues that matter most to them and push for legislation.

Summit speakers laid out facts about funding, discussed trade-offs between spending on different programs, and urged everyone to share their personal stories about why their issue is important. “Let’s pull those heart strings,” said Elyse Lowe of Circulate San Diego, “so we can do a better job advocating for good transportation policies.”

Stuart Cohen, executive director of TransForm, created an “applause-o-meter” to gauge summit attendees’ views on trade-offs between funding categories. He asked participants to applaud for the categories of activities they thought were most important: planning; bicycle and pedestrian infrastructure; transportation demand management programs like shuttles, carpool programs, and guaranteed ride home programs; affordable homes near transit; and transit capital and operating costs.

The audience, mostly comprised of savvy transportation advocates, applauded for all of these categories, although there two clear “winners”: affordable homes near transit and transit capital and operating costs. These also were the most expensive categories, according to Cohen’s estimate of how much it would cost to fully fund needs in these areas: $6 billion for transit and $1 to $1.5 billion for housing. Read more…

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Updated Report Shows CAHSR’s GHG Reductions Less Costly Than Thought

UCLA’s Lewis Center revised some of the estimates in its recent report comparing the costs of reducing greenhouse gas (GHG) emissions using California high-speed rail to those of bike, pedestrian, and local transit projects. The report’s authors found that high-speed rail is not as expensive as an emission reduction as they first thought.

Lewis_yellow_box_REVISED_copyThe update makes several adjustments to the analysis, which compared CAHSR to Los Angeles Metro’s Gold Line light rail and the Orange Line bus rapid transit route, as well as the bikeway that runs parallel to it. Originally, the report found high-speed rail to be a much less cost-effective way to reduce GHGs than any of the three urban transit options. While the new cost-benefit analysis for high-speed rail looks much better, it’s still not quite on par with local transit investments.

The new comparison of costs among high-speed rail, light rail, bus rapid transit, and the bikeway is shown in the table below. As discussed in our previous story on this report, the authors consider anything less than the current price of a metric tonne of emissions under the cap-and-trade system (about $11) a cost-effective way to reduce greenhouse gas emissions. The lower the cost, the greater the cost-effectiveness.

The UCLA authors’ new cost/benefit estimates.

The new estimate for CAHSR is -$335 per metric tonne, compared to the previous $361. Those estimates are the full public cost plus user savings (in the case of high-speed rail, that’s the price of a ticket compared to the cost of driving or flying). However, the bus rapid transit, light-rail, and bikeway are still more cost-effective at -$676, $1,233, and $3,569, respectively.

Here’s why the numbers changed: Read more…

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California Legislation Watch: Weekly Update

For social media coverage of California’s statewide transportation issues, follow Melanie @currymel on Twitter or like the Streetsblog California Facebook page.

Here’s Streetsblog’s weekly highlight of legislation and events related to sustainable transportation at the California capitol.

  • News on the implementation of S.B. 743, which removes Automobile Level of Service (LOS) from consideration as an environmental impact in areas with robust transit. The state’s Office of Planning and Research released the public comments it has received on its update of CEQA guidelines and its draft guidelines for S.B. 743, passed last year. S.B. 743 requires the OPR to come up with a new urban planning metric to replace LOS that measures the effect of development and transportation projects on all traffic, not just car drivers. Proponents are enthusiastic about eliminating an outdated, car-centric measure that has led to wider, faster streets. Critics worry that cities and counties no longer have the means to require developers to improve streets. The next steps: drafting the actual guidelines, releasing them for public comment in late spring, and producing a final draft version of the guidelines by July 1.
  • Caltrans published a new mission statement: “Provide a safe, sustainable, integrated and efficient transportation system to enhance California’s economy and livability.” This is a vast improvement over the old one, “Caltrans improves mobility across California,” and it contains all the right buzzwords. The mission statement was the first item on the Early Action Plan outlined in the State Smart Transportation Initiative report urging deep reforms in Caltrans. Check — now to work.
  • More extensive senate hearings saw debates about the governor’s cap-and-trade expenditure plan and high-speed rail, this time in the Senate Transportation and Housing Committee and the Senate Budget Subcommittee on Resources, Environmental Protection, Energy and Transportation. CA High-Speed Rail Authority CEO Jeff Morales defended the use of cap-and-trade funds for high speed rail, and Senator Jim Patterson (R-Fresno) attacked cap-and-trade as a slush fund and high-speed rail as an expensive project that will produce a “puny” reduction in greenhouse gas emissions. Plenty of comments from the Legislative Analyst’s Office and various interest groups.
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Advocates Push for Bike/Ped Funding From CA’s Cap-and-Trade Funds

A coalition of bike and pedestrian advocates are inviting organizations to sign on to a letter [PDF] asking the state legislature to recommend allocating $50 million of the state’s cap-and-trade revenue towards the Active Transportation Program. Currently, none of the $850 million in cap-and-trade funds are allocated specifically for walking and bicycling in this year’s budget.

Photo by Brian W. Knight from the Streetsblog "Kids + Cities Photo Contest, 2013"

Bicycles produce zero greenhouse gas emissions but get zero funds from cap-and-trade. Photo by Brian W. Knight from Streetsblog’s “Kids + Cities Photo Contest, 2013″

Caltrans recently released its first ATP call for projects, and applications are due May 21. Eligible projects support walking and bicycling, and must compete for funding that will be awarded according to a formula in the ATP guidelines, recently adopted by the California Transportation Commission. Applications are expected to request and amount exceeding the program’s current funding levels of $120 million per year.

Revenue from cap-and-trade, the system chosen by California to meet the requirements of the Global Warming Solutions Act, A.B. 32, must be spent on activities and projects that help meet its goals of reducing greenhouse gas emissions to 1990 levels by 2020. The governor’s proposed expenditure plan for cap-and-trade funds includes $100 million for the Strategic Growth Council for transit oriented development grants, which may include some bike and pedestrian infrastructure as part of larger projects. However, there is no cap-and-trade money specifically allocated to those modes.

The governor’s plan proposes an allocation of $250 million to high-speed rail, $200 million to the Air Resources Board for low-emission vehicle rebates, and $50 million to Caltrans to improve intercity rail, in addition to $250 million for other projects including energy efficiency, clean energy, and natural resource programs that will help reduce GHG emissions.

Building infrastructure for bicycles and pedestrians, and educating and encouraging people to use these emission-free modes, can reduce vehicle miles traveled and greenhouse gas emissions in the short term. In their letter, advocates argue that bike/ped projects are crucial in meeting the state’s emission reduction goals, though they do not specify what budget line should be reduced to create the $50 million cap-and-trade allocation for active transportation.

“There is a lot of demand for the ATP program,” said Jeanie Ward-Waller, California Advocacy Organizer for the Safe Routes to School National Partnership, one of the organizations putting together a letter asking the legislature to consider the allocation from cap-and-trade funds. “There are projects that are ready to go, and ready to start reducing emissions in the short term.” Read more…

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Senate Committee Grills CA High-Speed Rail Authority on Its Funding Plan

The California High Speed Rail construction and phasing plan. Source: CAHSRA’s 2013 Report on the Contribution of the High-Speed Rail Program to Reducing California GHG Emissions Levels

Doubts about the High Speed Rail Authority’s ability to fund its estimated $68 billion program dominated last week’s Senate Transportation and Housing Committee hearing (see the background report in this PDF). Committee Chair Senator Mark DeSaulnier (D-Concord) said he was “somewhat skeptical” about the Authority’s 2014 Draft Business Plan and questioned CAHSRA CEO Jeff Morales on the authority’s reliance on uncertain funding sources.

“You couldn’t get a [small business loan] based on what we’re assuming here,” DeSaulnier told Morales, referring to the high cost estimates and funding prospects in the Business Plan.

DeSaulnier asked all the questions at the informational hearing, since he was the only Committee member who showed up for it. However, he came well prepared, so instead of  yet another presentation on how cap-and-trade works, there was a pointed exchange about the funding capabilities of high speed rail.

DeSaulnier warned Morales that the Authority may have a hard time getting the necessary votes in the state legislature to pass the governor’s cap-and-trade expenditure plan, which proposes giving $250 million to high-speed rail from the proceeds of the state’s greenhouse gas emissions law, A.B. 32.

“If the legislature does not approve the governor’s allocation of cap-and-trade funds, what do you foresee would be the impact on the high-speed rail program?” DeSaulnier asked Morales.

Morales responded, “The governor’s proposal allows us to move forward with certainty. If we can accelerate the program, it saves money.” Read more…

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Report: In Cutting Emissions, CAHSR Expensive Compared to Local Upgrades

Streetfilms featured Los Angeles’ Orange Line BRT and bike path in 2009. A new UCLA report says infrastructure projects like the Orange Line are a better way to invest cap-and-trade funds than CA High-Speed Rail.

UCLA’s Lewis Center published a report yesterday finding that California’s High-Speed Rail project is a relatively expensive way to reduce greenhouse gas emissions (GHG) in the near-term, compared to upgrading local transit and bicycle infrastructure.

Comparing CAHSR to Los Angeles Metro’s Gold Line light-rail and Orange Line bus rapid transit route and bikeway, the report finds high-speed rail to be the least cost-efficient investment the state could make.

The high-speed rail project costs more per metric tonne of GHG emissions than the current cost of allowances under cap-and-trade, the report says. If the savings costs to users are included in the calculations, then the light-rail, busway, and bikeway projects cost far less than the cap-and-trade auction price, which makes them more cost-effective ways to meet the emission reduction goals set out in California’s Global Warming Solutions Act, A.B. 32.

“There are a lot of projects that can reduce GHG emissions,” said Juan Matute, one of the report’s authors. “And differentiating between them will become more important in the future. One way is to look at the cost-effectiveness of the reductions.”

Governor Jerry Brown’s proposed cap-and-trade expenditure plan includes $250 million for high-speed rail to be spent in the next year alone, but very little for other transit or bicycle and pedestrian projects. High-speed rail isn’t scheduled to be online until 2022, so the savings it yields won’t help meet the state’s 2020 emission reductions goals. Meanwhile, the funds could be used for more local investments such as transit services or bicycle and pedestrian connections that would reduce GHG emissions more quickly. Read more…

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Transportation Priorities Jostle for CA’s Cap-and-Trade Revenue

A series of hearings in Sacramento have been revisiting California’s Global Warming Solutions Act, Assembly Bill (A.B.) 32, which calls for a statewide reduction in greenhouse gas emissions (GHGs) to 1990 levels by 2020. Two recent hearings have opened discussions of Governor Jerry Brown’s proposed spending plan for the revenue received so far from the state’s cap-and-trade program, implemented as part of A.B. 32, and another recent Senate hearing discussed the program’s impacts to date.

Mary Nichols, Chair of the California Air Resources Board, explains cap and trade.

The auction of cap-and-trade credits is producing money for the state, which, under A.B. 32, must be spent on helping further reduce GHG emissions. Last month, Governor Brown released his cap-and-trade expenditure plan for 2014-2015, in which he proposed to spend $850 million in expected revenue from the auctions. Of that, $600 million would be used for transportation-related projects and programs, with the lion’s share of that ($250 million) for high speed rail.

Other transportation categories include $50 million to Caltrans to expand and modernize existing rail; $200 million towards programs that encourage the use of zero-emission vehicles, including trucks, buses, and cars; and $100 million over the next two years to the Strategic Growth Council for Sustainable Communities programs, including plans that encourage compact and infill development near transit.

The governor’s plan does not include any funds for bicycling, walking, or transit other than what would fall under the above categories, even though these transportation modes offer a huge potential savings in GHG emissions.

At a Senate Transportation Committee hearing Wednesday, a long line of public advocacy groups spoke up for reshuffling the cap and trade funds, mostly in the direction of the respective group’s preferred emissions-reduction strategy (better transit, for example, or forest fire prevention given this dry year).

But only a few speakers questioned why so much money was being given to high speed rail. The Legislative Analyst’s report questioned the GHG benefits of California’s planned high speed rail, which would not have any effect on emissions until 2022 at the earliest, and would at best provide a modest contribution to GHG reductions.

“We need to fund GHG reductions in the near term,” said Catherine Phillips of the Sierra Club. “It doesn’t warrant spending 31 percent of the money on high speed rail. Many other programs will get you reductions sooner than will high speed rail.” Read more…

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Sen. Steinberg Proposes Carbon Tax on Gas Instead of Cap-and-Trade

Estimated effect of a carbon tax on sources of United States electrical generation Source: US Energy Information Administration via wikimedia.

Estimated effect of a carbon tax on sources of United States electrical generation Source: US Energy Information Administration via wikimedia.

CA Senator Darrell Steinberg proposed a change yesterday to California’s nascent cap-and-trade program that would replace next year’s cap on fuel emissions with a per-gallon carbon tax. Steinberg called it a “broader, more stable, and more flexible” way to reduce emissions from fuels than cap-and-trade.

His proposal would apply the revenue raised from the tax towards tax relief for poor and middle-income Californians, who would feel the greatest pinch from higher gas prices. That could help defuse anger at having to pay more at the pump, while still discouraging demand for gas. “Under either [program], consumers will pay more at the pump. That’s necessary,” said Steinberg. “If carbon pricing doesn’t sting, we won’t change our habits.”

CA Senate President Pro Temp Darrell Steinberg, D-Sacramento. Photo: Sacramento Bee

CA Senate President Pro Temp Darrell Steinberg, D-Sacramento. Photo: Sacramento Bee

Reactions to Steinberg’s proposal so far have been mixed. The Western States Petroleum Association prefers it as “a transparent alternative” to cap-and-trade, and the Environmental Defense Fund criticized what it sees as a mid-stream switch that could “compromise” CA’s emission reduction strategies.

Stuart Cohen, executive director of TransForm, said ”we strongly believe that California is creating an excellent cap-and-trade program that is, and will work, effectively. Yet a carbon tax is an extremely clear and straightforward, and ultimately more predictable, way to approach the fuels sector.”

“If this had been offered as a serious proposal seven years ago, we would have thought it was heaven-sent,” he added. “I don’t think it makes sense to reject it outright. It’s certainly worth having the discussion” about cap-and-trade vs. a carbon tax.

John White of the Clean Power Campaign, a coalition of public interest groups working for clean fuels, says his organization has no official stance yet on the proposal. However, he said, “This is a good conversation to have. A carbon tax is a different way to do the same thing. The point of collection is also at the pump, but with cap-and-trade there’s no clear signal except for a higher price, and no predictability of what that price would be.”

Read more…