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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

Low-Carbon Transportation for OregonJohn GallowayProgram DirectorOregon Environmental Council

Presentation to JELL Symposium 10/10/08

oregon environmental council
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
fuels policies current
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
broader fuel policies future
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)
attempted policy clean cars standard
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
attempted policy clean cars standard6
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
low carbon fuel standard lcfs
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
lcfs advantages
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
lcfs challenges
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
transportation policies overview
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
transportation policies overview12
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
transportation usage based fees
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?
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
thank you
Thank You!

John Galloway

Program Director

(503)222-1963 Ext. 117

johng@oeconline.org

markets for diesel and gasoline
Markets for Diesel and Gasoline

Gasoline

Diesel

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