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Low-Carbon Transportation for Oregon John Galloway Program Director Oregon Environmental Council. Presentation to JELL Symposium 10/10/08. Oregon Environmental Council . Celebrating our 40 th anniversary this year We work to: Slow global warming Protect kids’ health from toxic pollution

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Low carbon transportation for oregon john galloway program director oregon environmental council l.jpg

Low-Carbon Transportation for OregonJohn GallowayProgram DirectorOregon Environmental Council

Presentation to JELL Symposium 10/10/08

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Oregon Environmental Council

  • Celebrating our 40th anniversary this year

  • We work to:

    • Slow global warming

    • Protect kids’ health from toxic pollution

    • Clean up Oregon’s rivers

    • Promote healthy food and farms

    • Build a sustainable economy

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Fuels Policies: Current

  • Renewable Fuels Standard

    • Statewide standard adopted 2007, currently in roll-out

    • E10 (10% ethanol) and B2 / B5 (biodiesel blends)

    • Portland just celebrated one-year anniversary of its RFS

    • Federal RFS: 36 billion gallons by 2022

  • Financial Incentives for Biofuels Feedstock and Fuel Producers

    • State: Feedstock incentives, BETC, property tax exemptions

    • Federal: loan guarantees, blender credits

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Broader Fuel Policies: Future

  • Low-Carbon Fuels Standard

    • 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)

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Attempted Policy: Clean Cars 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

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Attempted Policy: Clean Cars 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

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Low-Carbon Fuel Standard(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

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LCFS: 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

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LCFS: 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

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Transportation Policies Overview

  • 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

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Transportation Policies Overview

  • Revenue

    • Gas tax revenues and vehicle fees dedicated by OR Constitution (Article IX, section 3a) to public highways, roads, and streets (with limited exceptions)

    • 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

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Transportation:Usage-based Fees

  • PAYD: Pay As You Drive Insurance

  • “Per mile” user fees

    • Could replace gas tax

    • ODOT pilot program demonstrated system is inexpensive but not ready for commercial use

    • May raise privacy concerns

  • Congestion pricing

  • Typically applied in high-traffic corridors and/or inner urban congestion zones

  • Carrots vs. sticks: untapped incentives?

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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

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Thank You!

John Galloway

Program Director

(503)222-1963 Ext. 117

[email protected]

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Markets for Diesel and Gasoline



Gallons consumed in U.S. in 2002

~110 billion

~57 billion

Gallons consumed in Oregon each year

~1.4 billion

~720 million

Gallons consumed in Oregon each day

~4 million

~2 million

Source: SeQuential Biofuels