The Florida Energy and Climate Commission (FECC) Florida Clean Vehicle Emission Standards Kelley L. Smith Florida Energy and Climate Commission Executive Office of the Governor

CO2 Emissions from Florida Vehicles Transportation accounts for over 40 percent of the CO2 emissions in Florida.

CO2 Emissions from Florida Vehicles Passenger cars and light-duty trucks account for nearly 2/3 of the transportation CO2 emissions.

Florida Gross Emissions Growth (MMtCO2e, Consumption Based)

Executive Order 07-127 Adoption of the California motor vehicle emission standards in Title 13 of the California Code of Regulations, upon approval by the U.S. Environmental Protection Agency of the pending waiver, which includes emission standards for greenhouse gases, submitted by the California Air Resources Board Reductions of greenhouse gas emissions from transportation sources are necessary, and it is equitable to seek such reductions because reductions in greenhouse gas emissions have already been initiated in other sectors such as power generation;

Adoption of Florida Clean Vehicle Emission Standards Rule Greenhouse gas (GHG) from vehicles is primarily carbon dioxide (CO2) Florida’s Clean Vehicle Emission Standards Rule (adopting California standards) is Florida’s only option under federal law to regulate GHG emissions from new passenger cars & light-duty trucks No federal GHG standards exist CO2 emissions are from fuel combustion. GHGs Impact global climate change. Clean Air Act forbids states other than California from adopting their own state standards Other states are allowed to adopt California standards (must be “identical”) Must wait two model years before implementation would occur

Florida Clean Vehicle Emission Standards Rule The purpose of the rule is to adopt emission standards for cars and light-duty trucks that 1) regulates tailpipe emissions 2) sets a fleet-wide average for GHG emissions These regulations are set to achieve the “maximum feasible and cost effective reduction” in GHG emissions

Vehicles Subject to Clean Vehicle Emission Standards Rule Passenger Cars Medium-duty passenger vehicles Less than 10,000 lbs gross vehicle weight Designed for transporting persons Light Duty Trucks 8500 lbs gross vehicle weight or less Designed for transporting property Examples of Medium Duty Grand Cherokee, Explorer, Pathfinder Examples of light duty trucks F-150, Silverado 1500, Tacoma

Vehicles NOT subject to Clean Vehicle Emission Standards Rule Medium-duty Trucks Trucks over 8500 lbs gross vehicle weight that are not passenger vehicles All trucks 10,000lbs gross vehicle weight and up Emergency vehicles Military vehicles Custom-built vehicles Vehicles designed exclusively for off-highway use Examples of Medium duty F-250, F-350, Silverado 2500, 3500, Tundra

Benefits of Florida Clean Vehicle Emission Standards Rule Protects the environment Improves energy security Saves Floridians money Proposed federal fuel economy (CAFE - miles per gallon – MPG) will apply nationwide. Higher MPG means less GHG. California standards achieve more GHG reductions than fuel economy standards alone. Incremental improvement over fuel economy standards, with a small incremental additional initial vehicle cost. CAFE stimulates production of flex-fuel vehicles, while California GHG standards encourage actual use of E85 (85% ethanol) fuel. MPG standards, by themselves, discourage ethanol because ethanol has less energy per unit volume, so produces lower MPG, but emits less CO2. California GHG standards regulate CO2 emissions, not MPG, so favor ethanol usage with resulting decreased CO2 emissions. Florida and California both support commercialization of cellulosic ethanol, which is important to the future of low carbon fuels.

Protects Our Environment By 2016, the rule will have reduced Florida's greenhouse gas emissions by a cumulative total of approximately 23 million metric tons This equates to approximately a 6% reduction of the total emissions from cars and light trucks through 2016 The effective date of the program may change, and the later the effective date, the smaller the cumulative benefit; this calculation is assuming the program start in Florida in 2013. For this slide the cumulative emissions were estimated to be approximately 350 MMT, so the percentage benefit is 23/350 x 100 = 6.6%. Because of uncertainties with projecting fuel consumption, we have rounded down the benefit to 6%.

Improves Energy Security In 2013, Florida will save 440 million gallons of gasoline. By 2016, Florida's gasoline consumption will be reduced by a total of 2.7 billion gallons. Florida consumed 8.6 billion gallons of gasoline in 2005. Projections of reductions in gasoline consumption are derived from California's projections, using an EIA factor for the relative consumption of gasoline between California and Florida.

Consumer savings Near-term sticker price increase = $92 to $668 using existing, cost-effective technologies. The payback on the initial investment is one to six years, depending on fuel prices and individual technologies. The department’s economic analysis of September 5, 2008, assumed a cost of gasoline of $3.15/gallon, which showed a payback period of 1 to 3 years. Adjusting for the average price on January 12, 2009 of approximately $1.80/gallon, the payback period would increase to 1.75 to 5.25 years. The total range of payback estimated periods thus ranges from 1 to 6 years.

Rule Adoption Process for Florida Clean Vehicle Emission Standards Three public workshops, starting in August 2007 Three briefings with the ERC starting June 2008 Two ERC rule adoption hearings: October 29 and December 2, 2008 ERC approved rule December 2, 2008 The Environmental Regulation Commission (ERC) is an independent, regulatory, citizen-member board appointed by the Governor. The ERC reviews and approves Dept. rules that establish environmental standards.

Next Steps Approved by Joint Administrative Procedures Committee on January 23, 2009 Filing with the Secretary of State on January 26, 2009 Ratification by the Legislature 2009 Statutory language reads, “If the [DEP] proposes to adopt the California motor vehicle emission standards, such standards shall not be implemented until ratified by the Legislature. …such rule modifications shall not be implemented until ratified by the Legislature.”