1. California Climate Change Programs: An Overview Conference of the Reducers The Hague May 12, 2003 James D. Boyd California Energy Commission

2. California – A Nation State Population of 34 million now, 41 million by 2010 5 th largest economy in the world 5 th largest consumer of energy in the world 2 nd largest consumer of gasoline and diesel – only the total US uses more Lowest US per capita electricity consumption 5 th most economical energy consuming economy 1.5% of world’s greenhouse gas emissions but low per capita emissions

3. Our Principal Reservoir - The Sierra Snow Pack - Is Shrinking Warmer winters have: Reduced snow pack Earlier snow melt Decreased Spring runoff by 10% Major effects on water supply, agriculture, San Francisco Bay-Delta

4. Sea Level is Rising Along California’s Coast Sea level has already risen 7” in 150 years Levee stability and salt water intrusion concerns IPCC projects 4-12” sea level rise by 2050 Present Delta system may not be viable with 8-12” sea level rise

5. 1990-1999 U.S. and California Trends in GHG Emissions 0.94 0.96 0.98 1.00 1.02 1.04 1.06 1.08 1.10 1.12 1.14 1990199119921993199419951996199719981999 Emissions normalized to 1990 values CaliforniaUnited States

6. Carbon Intensity for California and Selected States - 1999

7. Carbon Intensity for California and Selected Countries - 1995

8. Early Climate Change Analysis The California Legislature in 1988 directed the Energy Commission to study global warming trends that may affect energy supply and demand, economy, environment, agriculture and water supplies (SB 4420, Sher) The Energy Commission published “Global Climate Change: Potential Impacts and Policy Recommendations” in December 1991

9. California Climate Change Registry The Legislature in 2000 directed the Resources Agency to create a non-profit organization to register voluntary GHG emission inventories (SB 1771, Sher) State and Registry approval process for third-party certifiers Report direct and indirect emissions of CO 2 Report other Kyoto gases after three years

10. Joint Agency Climate Team JACT was formed to develop overall policy strategy for State of California –Reduce GHG emissions through reductions and sequestration –Adapt complex structures of the state to climate changes Data and analysis Research and demonstration Education and information outreach Government policies and programs

11. CEC Climate Change RD&D Legislation in 1996 created the Public Interest Energy Research Program at the Energy Commission A focus on climate change research Improve the state-of-science/art regarding climate change and its physical and economic impacts on California Produce policy relevant research that will allow the state to develop sound mitigation and adaptation strategies

12. CEC Climate Change RD&D Budget

13. Sequestration of CO 2 California Climate Registry to adopt protocols for accounting, reporting, and certifying carbon stocks and CO 2 emissions sequestered by forest conservation and reforestation of native forests in California Project lands must be permanently dedicated to forest use through restrictions granted in perpetuity Project activities that are reported must exceed those already required

14. Renewable Portfolio Standards Requires that 20 percent of retail sales of electricity be provided with renewable energy by December 31, 2017 Each electrical corporation shall increase its portfolio of renewable by at least 1% of retail sales per year Once an electrical corporation achieves 20%, it’s not required to increase procurement in following years

15. Sources of GHG in California

16. California Transportation Context Transportation represents one-half of California’s primary energy use and 58 percent of CO 2 emissions Californians own more than 24 million registered vehicles and consume nearly 17 billion gallons of gasoline and diesel fuel each year Californian’s spend more than $34 billion on transportation fuels each year California gasoline has the highest price volatility of any commodity traded in the US, except for California electricity

17. California Transportation Context

18. California Transportation Context Refining Capacity

19. California Transportation Context

20. Reducing Petroleum Dependence Joint study by the Energy Commission and California Air Resources Board Forecast gasoline and diesel consumption in 2010 and 2020 Recommend statewide goals and strategies to reducing gasoline and diesel consumption

21. Reducing Petroleum Dependence Recommended Goals … Reduce demand for on-road gasoline and diesel to 15 percent below the 2000 level by 2020 Establish national fuel economy standards that doubles the fuel efficiency of new cars, light trucks and SUVs Increase the use of alternative fuels to 15 percent by 2020

22. Reducing Petroleum Dependence Recommended strategies … Near-Term –Efficiency Measures –Fischer-Tropsch Diesel –Ethanol Mid- to Long-Term –Light-Duty Vehicle Fuel Economy –Light-Duty Diesel Vehicles –LNG –Hydrogen Fuel Cell Vehicles

23. Reducing Vehicle GHG Emissions California Air Resources Board shall adopt regulations by January 1, 2005 that: “achieve the maximum feasible and cost- effective reduction in GHGs emitted by passenger vehicles and light-duty trucks” Interaction with the California Climate Change Registry

24. Reducing Vehicle GHG Emissions General Requirements … Report to Legislature and Governor by January 1, 2005 Regulations may not take effect prior to January 1, 2006 Regulations apply only to 2009 and later model years

25. Reducing Vehicle GHG Emissions The Regulations shall not require … Fees or taxes on vehicle, fuel or VMT Ban sale of any vehicle category Reduce vehicle weight Reduce speed limit Limit or reduce VMT

26. Reducing Vehicle GHG Emissions In Developing Regulations … Consider technical feasibility Consider impact on State economy Evaluate environmental and social impacts Consider alternative means of compliance Conduct public workshops Grant credit for early reductions

27. Reducing Vehicle GHG Emissions Establish MY 2000 baseline (used for calculation of credits for early compliance) –CO 2, CH 4, N 2 O, HFCs –Black carbon, tropospheric ozone precursors More information needed for some pollutants

28. Reducing Vehicle GHG Emissions Technology assessment includes… Technology Symposium In-depth staff review –Engine, transmission, catalyst –Air conditioning –Tires –Hybridization –Aerodynamics –Vehicle integration External expert assessment

29. Reducing Vehicle GHG Emissions

30. Detailed technical work Initial workshop (GHG inventory) December 02 Symposium on vehicle technology March 03 Additional workshopsVarious Summary workshop October 03 Board updateNovember 03 Draft staff proposal Release staff draft May 04 Workshop June 04 Final staff proposal July 04 Board adoption September 04 Report to Legislature/Governor January 05