WE'RE GONNA GO TO GET STARTED --
PUTTING ASSEMBLY MEMBER SALAS
RESTORED THE SELECT COMMITTEE ON
CALIFORNIA'S ENERGY FUTURE.
I WANT TO THANK THE MEMBERS FOR
BEING PRESENT FOR THE FIRST
MEETING OF THE ASSEMBLY SELECT
COMMITTEE ON CALIFORNIA'S ENERGY
FUTURE.
ALSO THANK YOU TO THE MEMBERS OF
THE OF THE PUBLIC PRESENT TODAY
AND TO THOSE WHO MAY BE TUNING
IN OUR MIND HER WATCHING ON TV.
AND YOU WANT TO ANNOUNCE THE THE
MEMBERSHIP OF THE SELECT
COMMITTEE THEY ARE
ASSEMBLYMEMBER AGUIAR-CURRY
ASSEMBLY MEMBER BURKE ASSEMBLY
MEMBER CUNNINGHAM ASSEMBLY
MEMBER GIPSON.
ASSEMBLY MEMBER GRAYSON ASSEMBLY
MEMBER HOLDEN ASSEMBLY MEMBER
MATHIS.
ASSEMBLYMEMBER MEDINA SYMBOL
MEMBER RUBIO.
AND ASSEMBLY MEMBER WOULD --
WHICH SIDE REFORM THIS COMMITTEE
AS A PLATFORM TO DISCUSS
CALIFORNIA'S PRESSING ENERGY
CHALLENGES AND TRIUMPHS.
WE JUST OF QUESTIONS LEARN ABOUT
HOW WE CAN DO WHAT WE CAN DO
BETTER AS POLICY MAKERS TO
SUPPORT AND ENERGY FUTURE THAT
WORKS FOR ALL CALIFORNIANS.
CALIFORNIA'S BEEN A WORLD LEADER
IN SETTING CLIMATE CHANGE POLICY.
THIS BODY IS CHAMPION MANY OF
THE STATE'S CLAIM.
I CLIMATE POLICIES BUT TODAY'S
AGENDA FOCUSES ON ONE PROGRAM
OVER WHICH THE LEGISLATURE HAS
HAD LITTLE INVOLVEMENT.
THAT'S THE LOW CARBON FUEL
STANDARD WE'VE INVITED SEVERAL
PANELS OF EXPERTS HERE TODAY TO
DISCUSS THE HISTORY OF THE
PROGRAM.
IMPLEMENTATION AND HOW
STAKEHOLDERS ARE COMPLYING. TO
MAINTAIN OUR POSITION AS A
GLOBAL LEADER OF THESE ISSUES WE
BUST HAVE A HOLISTIC
UNDERSTANDING OF OUR PROGRAMS WE
MUST RECOGNIZE.
OR WE MAY HAVE CHALLENGES IN
MEETING GOALS.
ADDRESS THOSE CHALLENGES IN WAYS
THAT ENSURE CONTINUED
ENVIRONMENTAL AND ECONOMIC
SUCCESS.
THIS IS ESPECIALLY IMPORTANT
GIVEN THAT PROGRAMS CURRENTLY
BEING REVIEWED AND UPDATED BY
THE AIR RESOURCES BOARD.
AS WE KNOW TRANSPORTATION
EMISSIONS ARE A SIGNIFICANT
SOURCE OF GREENHOUSE GAS
EMISSIONS.
AND THE LEGISLATURE HAS
RESPONSIBILITY OF DEVELOPING
EFFECTIVE POLICY TO COMBAT THIS
PROBLEM.
TODAY WE HOPE TO HEAR HOW THIS
PROGRAM IS HELPING THE METER
CLIMATE GOALS IN THIS SECTOR
ALSO THE WAYS IN WHICH COMPANIES
AND STAKEHOLDERS ARE COMPLYING
[inaudible]
AND PARTICIPATING.
I HOPE THAT MEMBERS OF THIS
COMMITTEE WILL FIND THE
INFORMATION USEFUL ON ALLOWS
CONTINUE TO ENGAGE.
ON CLIMATE POLICIES IN AN
INFORMED MANNER.
THE FORMAT OF TODAY'S HEARING IS
BROKEN UP INTO THREE PANELS
FIRST WE WILL INVITE UP THE
LEGISLATIVE ANALYST'S OFFICE. TO
GIVE AN OVERVIEW OF THE PROGRAM
FOR WHICH THEY HAVE PREPARED A
DOCUMENT.
I THAT IS INCLUDED IN OUR
MEMBERS FOLDERS.
I DURING OUR SECOND PANEL WE
WILL HEAR TESTIMONY FROM
REGULATED PARTY'S UNDER THE L.
CFS PROGRAM.
AND WE HAVE INVITED --
SEVERAL PANEL A PANEL OF
REPRESENTATIVES FROM SEVERAL
PRODUCERS OF TRANSPORTATION
FUELS.
AND OUR LAST PANEL WE HAVE
CONVENED A PANEL OF INTERESTED
STAKEHOLDERS WILL PRESENT
RESEARCH TO TESTIFY.
ON THEIR PERSONAL EXPERIENCES
PARTICIPATING IN THE PROGRAM.
UP THAT THIS IS A THOROUGH AND
FRUITFUL DISCUSSION AND I
WELCOME MEMBERS OF THE COMMITTEE
TO COME.
IN TRIBUTE TO THE DISCUSSION BY
ASKING.
QUESTIONS OF OUR PANELISTS --
AND I KNOW WE HAVE SEVERAL
MEMBERS THAT ARE STUCK AND
SEVERAL OTHER HEARINGS RIGHT NOW
SO MEMBERS MAY BE COMING IN AND
OUT I KNOW THEY'RE THERE.
COUPLE OF MEMBERS THAT HAVE
EXPRESSED INTEREST IN ATTENDING.
AND I HAD PLANNED ON ATTENDING
BUT ANOTHER SECOND HEALTH.
HIGHER EDUCATION AGING.
AND A HOST OF OTHER COMMITTEES
AND PRESENTING --
BILLS OVER IN THE SENATE AS WELL.
SO WITH THAT --
WILL BE TURNED OVER TO SELLING
OUR MATHIS IF YOU LIKE TO MAKE
ANY OPENING REMARKS BEFORE WE
GET WITH THE FIRST PANEL.
THE US CHAIR --
FOR ME.
WAIT WHAT I FOUND OUT WE WERE
GOING TO HAVE THIS COMMITTEE PUT
TOGETHER IMMEDIATELY REACHED OUT.
ENERGY IS OF THE ELEMENTS
IMPORTANCE IN OUR STATE.
AND AND USE THAT OR THE HEAD OF
US.
AND YOU KNOW KNOWING WHAT'S
GOING TO BE THE FUTURE --
FOR MY KIDS AND MY GRANDKIDS I
DEFINITELY WANTED TO BE PART OF
THIS -- ALSO
BE IN ONE OF THREE MEMBERS OUT
OF THE HUNDRED TWENTY TOTAL IN
THE STATE LEGISLATURE THAT'S
GRADUATED FROM THE DEPARTMENT OF
ENERGY'S LEGISLATIVE ENERGY
HORIZON INSTITUTE.
I WANTED TO ENSURE THAT I ALSO
HAVE A SEAT ON THIS.
COMMITTEE AS WELL --
I'M INTERESTED IN THE DISCUSSION
IN ONE ENSURE THAT WE ARE DOING
THE MOST --
SENSIBLE APPROACH.
AND I TO ENERGY IN OUR STATE AND
LOOKING FOR VIABLE SOLUTIONS --
FOR ENERGY.
THAT ARE GONNA BE ECONOMICALLY
SOUND FOR CALIFORNIA FAMILIES SO
WITH THAT THANK YOU.
I THINK IT'S SOMEWHERE MATHIS
DISCORDANT GET STARTED WITH OUR
FIRST PANEL I BELIEVE IT IS --
MISTER ROSS BROWN FROM THE
LEGISLATIVE ANALYST'S OFFICE.
AND MISTER BROWN HOW WOULD YOU
LIKE TO PROCEED.
THANK YOU MISTER CHAIR MEMBER
ROSS BROWN WITH THE ALEJO --
AS THE CHAIR MENTIONED WE PUT
TOGETHER A HAND OUT FOR TODAY'S
HEARING AND SO I'LL BE --
BASE IN A LOT OF MY COMMENTS --
ON THE CONTENT NOT HANDOUTS OR
TRY TO WALK THROUGH THAT --
ESSENTIALLY WHAT WE GO THROUGH
ITS JUST SOME BASIC BACKGROUND
ON THE LCF US.
I KNOW HOW THE PROGRAM WORKS
SOME HISTORICAL UPDATE ON THE
PROGRAM --
TALK BRIEFLY ABOUT SOME OF THE
PROPOSED CHANGES THAT A RB IS
PROPOSING AS PART OF ITS
REGULATORY PACKAGE.
AND THEN BRIEFLY TOUCH ON JUST
SOME ISSUES FOR THE LEGISLATURE
AND THE COMMITMENT COMMITTEE TO
CONSIDER AS A CONDUCTOR ITS
OVERSIGHT ACTIVITIES THANK YOU
APPRECIATE THAT --
JUST BEFORE I I DIVE INTO THE
HAND OUT --
I DO WANT TO JUST HIGHLIGHT THAT
NEARLY ALL CFS IS A A COMPLEX
PROGRAM AND WE HAVE NOT DONE A
SORT OF FULL IN DEPTH ANALYSIS
OF THE PROGRAM WE HAVE PUT
TOGETHER THIS.
AYE INFORMATION BUT TO THE
EXTENT THERE ARE SORT OF IT'S
ABOUT SORT OF HOW DIFFERENT
PARTIES COMPLY WITH THE PROGRAM
IN THE SPECIFICS OF SOME OF THE
DETAILS.
ARE HAPPY TO KIND OF GET BACK
BACK TO YOU ON THOSE QUESTIONS
AND I'M SURE YOU'RE A SUBSEQUENT
PANELISTS WILL WILL HAVE MY SOME
RESPONSES TO SOME OF QUESTIONS
AS WELL SO I JUST WANNA.
GET THAT OUT THERE --
SO IF YOU TURN TO PAGE ONE OF
THE HAND OUT JUST BRIEFLY SOME
BACKGROUND --
LOW CARBON FUEL STANDARD --
FIRST CREATED BY THE AIR
RESOURCES BOARD IN TWO THOUSAND
NINE UNDER ITS A. B. THIRTY TWO
AUTHORITY --
TO REDUCE GREENHOUSE GAS
EMISSIONS AS PART OF A LARGER
BROADER STRATEGY --
FOR MEETING THE STATE'S
GREENHOUSE GAS GOALS THAT
INCLUDES A VARIETY OF OTHER
POLICIES.
INCLUDING CAP AND TRADE --
RENEWABLE PORTFOLIO STANDARD
VEHICLE EFFICIENCY STANDARDS
POLICIES TO TRY TO REDUCE
VEHICLE MILES TRAVELED --
THE GOAL OF THIS PARTICULAR
PROGRAM IS REALLY TO REDUCE THE
LIFECYCLE CARBON INTENSITY OF
THE FUELS THEMSELVES SO --
THERE'S ARE TARGETING ONE
PARTICULAR ASPECT OF
TRANSPORTATION EMISSIONS AND
THAT'S WHERE THE CARBON
INTENSITY OF THE FUEL SO NOT BID.
OFFICIALS IS A VEHICLES OR
VEHICLE MILES TRAVELED.
ARM AND THE WAY THE REGULATION
DOES THIS IS THE CAR ESTABLISHES
A OUT TO CARBON INTENSE ARE IS
ESTABLISHES DIFFERENT CARBON
INTENSITY BENCHMARKS --
THERE'S ONE FOR GASOLINE THERE'S
WILL SEPARATE ONE FOR DIESEL.
AYE AND THOSE ARE ANNUAL
BENCHMARKS OUT DECLINE.
AND THEY ALSO MEASURE THE A OF
DIFFERENT FUELS AND SORT OF
MEASURE THAT CARBON INTENSITY
RELATIVE TO THE BENCHMARK --
AND AND AND SORT OF THAT TRY TO
ACHIEVE THOSE STATEWIDE GOALS
ARE SET OUT IN THE IN THE
BENCHMARK --
I THINK ONE KEY DIFFERENCE TO
NOTE BETWEEN THE LCF US AND SOME
OF THE OTHER.
POLICIES THAT THE STATE HAS A
FOR EXAMPLE CAP AND TRADE IS
THAT THE EMISSIONS ARE MEASURED
ON A LIFE CYCLE BASIS SO.
IT'S NOT JUST OR THE MISSIONS
ASSOCIATE WITH CONSUMING THE
FUEL BUT ALL OF THE EMISSIONS
ASSOCIATED WITH EXTRACTING AT
FOR EXAMPLE FROM THE GROUND
TRANSFORM A NET PROCESSING AT
REFINING AT ARMS OF THOSE
EMISSIONS ARE COUNTED THOSE
PROGRAMMERS AND SOME OTHER
PROGRAMS THOSE EMISSIONS ARE
PART OF THE ACCOUNTING.
SO -- IF YOU
TURN TO PAGE TWO OF THE HANDOUTS --
SO HOW DOES THE PROGRAM --
ENSURE COMPLIANCE WITH THESE
STATEWIDE TARGETS AND BENCHMARKS
AYE WHICH ARE OURS CURRENTLY
SCHEDULED TO GO DOWN TO A 10%
REDUCTION IN --
TWENTY TWENTY IT REALLY CREATES
AS A MARKET SYSTEM OF DEFICITS
AND CREDITS FOR COMPLIANCE.
ALSO CARP SETS A NEW STANDARD --
AND AND CONVENTIONAL FUEL
SUPPLIERS --
LARGELY RIGHT REFINERIES HAVE TO
MEET THAT STATEWIDE STANDARD OF
THAT BENCHMARK --
EXCEED THE OVERALL BENCHMARK
GENERATE DEFICITS --
FUELS THAT ARE SUPPLIED THAT ARE
BELOW THAT STATEWIDE NOT ARE
BELOW THAT BENCHMARK GENERATE
CREDITS.
AND OVERALL A AND UNITY
DEMONSTRATES COMPLIANCE BY --
OPINION ENOUGH CREDITS TO COVER
ITS OVERALL DEFICIT SO THE TABLE
THAT YOU SEE AT THE TOP OF PAGE
TWO KIND OF GIVES YOU A SENSE OF
NO SOME OF THAT CARP AVERAGE
CARBON INTENSITY FOR DIFFERENT
TYPES OF FUELS SO YOU SEE THAT
SORT OF MORE CONVENTIONAL FUEL
THE DIESEL.
AND GASOLINE ARE ABOVETHE
BENCHMARKS FOR THOSE FUELS AND
THEN YOU SEE COME UP AS YOU MOVE
FURTHER DOWN THE LIST YOU'LL SEE
THE AVERAGE CARBON INTENSITY FOR
SOME OF THE ALTERNATIVE FUELS
WHERE -- IF
THOSE FIELD OF SURPRISED THERE
ARE CREDITS THAT ARE GENERATED
AND THEN THEY CAN BE USED TO
COVER THE DEFICITS THAT ARE
INCURRED BY PROVIDING A A MORE
CONVENTIONAL HIGHER CARBON
INTENSITY FUEL --
AT DO JUST WANNA KNOW WITHIN
THESE BROADER CATEGORIES THAT
ARE LISTED IN THE TABLE THERE
ARE A WIDE VARIETY OF PATHWAYS --
KIND OF WITHIN THOSE DIFFERENT
CATEGORIES WHERE THE CARBON
INTENSITY OF A PARTICULAR FUEL
MIGHT DEPEND ON HOW THE RAW
PRODUCTS THAT ARE USED TO
PRODUCE THE FUEL WHERE IT'S
WHERE IT'S COMING FROM THOSE
TYPES OF THINGS SO.
EITHER ARE ARE A WHITE RIGHT A
DIFFERENCE OR CARBON INTENSITIES
WITHIN EACH INDIVIDUAL CATEGORY.
YOU TURN TO PAGE THREE OF YOUR
HANDOUTS --
THEY ARE REGULATED PARTIES --
HAVE A VARIETY OF DIFFERENT
COMPLIANCE OPTIONS TO TRANSFER
TO MEET THIS THIS TARGET THAT'S
BEEN SET OUT AND COVER THE
DEFICITS THAT THEY THAT ARE
INCURRED FROM PROVIDING HIGHER
CARBON INTENSITY FUELS.
ARE THE INCLUDES --
SUPPLYING LOWER CI FUELS SUCH AS
BLENDING LOWER CARBON INTENSITY --
ETHANOL INTO GASOLINE AS ONE
EXAMPLE --
IMPLEMENTING PROJECTS THAT
REDUCE OUR CARBON INTENSITY FOR
EXAMPLE --
PROJECTS THAT MIGHT USE.
OIL CAN BE --
CAN GENERATE A CREDIT IN THOSE
CREDITS CAN BE USED TO COMPLY --
AND THIRD PURCHASING PRODUCTS
FROM A LOW CARBON FUEL SUPPLIERS
THAT HAD GET CREDITS FROM SO AND
THOSE THOSE FIELDS.
ARE ALSO EXCESS CREDITS NOW
THEY'RE GENERATING NEW YEAR THAT
AREN'T USED CAN BE BANKS IN
HOUSTON AND FUTURE YEARS AS WELL.
I AM I THINK ONE OF THE THE KEY
FEATURES OF THE PROGRAM AND SORT
OF THAT THE MAIN REASON WHY I
THINK THE PROGRAM IS SET UP WITH
THE SYSTEM OF DEFICITS AND
CREDITS.
ARM IS THAT THE PROGRAM IS
REALLY INTENDED TO BE FUELED
NEUTRAL.
AREN'T MEANING THAT IT DOESN'T
REQUIRE ANY PARTICULAR FEEL BE
USED TO MEET THE OVERALL CARBON
INTENSITY STANDARD.
AND INSTEAD IT SORT OF PROVIDES
THESE --
INCENTIVES IN THE FORM OF CREDIT
PRICES --
FOR FOR AT INDUSTRIES OUT THERE
TO PROVIDE THE MIX OF FUELS THAT
ARE A LEAST COSTLY --
NEED --
WAITS ECONOMY THE OVERALL
STANDARD THAT'S ESTABLISHED IN
THE PROGRAM.
SO -- NEXT
I'LL MOVE ON TO PAGE FOUR OF
YOUR HANDOUT WHICH WAS REALLY
JUST SORT OF THE BEGINNING OF
JUST GIVING YOU SOME CONTEXT OF
AND WHERE WE'VE BEEN IN THE
PROGRAM SO FAR JUST AS FAR AS
THE NOTE NUMBER OF CREDITS AND
DEFICITS THAT HAVE BEEN
GENERATED.
I APOLOGIZE FOR THIS CHART THEIR
RELEASED A QUARTER OVER THE LAST --
FEW YEARS OF THE CREDITS ARE
KIND OF A LIGHT SHADE IN YOUR IN
YOUR CHART --
BUT MAYBE FIRST OFF FOCUS ON
SORT OF THE DARK BARS IN YOUR
CHART WHICH IS KIND THE
QUARTERLY DEFICITS THAT HAVE
BEEN GENERATED IN THE PROGRAM
OVER THE LAST SEVERAL YEARS --
THOSE DEFICITS HAVE BEEN
INCREASING.
LARGELY AS A FUNCTION OF SORT OF
WHEN THE A STANDARD BECOMES MORE
STRINGENT EACH YEAR THAT MEANS
YOU KNOW IF YOU'RE SUPPLYING A
PARTICULAR GASOLINE FOR EXAMPLE
THE NUMBER OF OF DEFICITS THAT
ARE INCURRED. FOR THAT GALLON OF
GASOLINE INCREASES AND SO SORT
OF THE NUMBER OF DEATHS THAT
DEFICITS INCREASES AS THE
STANDARD BECOMES.
MORE STRINGENT OVERTIME --
THE SECOND POINT IS A NUMBER OF
CREDITS YOU CAN SEE THEM ON SO
THE LIGHT SHADED BARS ON THEIR
HAVE ALSO BEEN INCREASING OVER
TIME --
REFLECTING SORT OF ADDITIONAL A
LOW CARBON FUEL SUPPLY AND IN
CALIFORNIA --
YOU SEE THE DIFFERENCE BETWEEN
THE CREDITS AND DEFICITS THAT
HAVE BEEN GENERATED IN THE
PROGRAM CREDITS HAVE EXCEEDED
DEFICITS.
FOR OUR ALMOST THE ENTIRETY OF
THE PROGRAM IN SOME CASES --
BY A SIGNIFICANT AMOUNT AS I
MENTIONED BEFORE CREDITS THAT
ARE GENERATED BUT THAT ARGUES
CAN BE BANKS AND USED IN FUTURE
YEARS SO WE'RE IN A SITUATION
WHERE THERE IS.
A PRETTY SUBSTANTIAL BANK OF
CREDITS THAT HAVE BEEN USED BUT
THAT ARE AVAILABLE FOR
COMPLIANCE.
I IN FUTURE YEARS.
ARM AND THEN FINALLY IF YOU LOOK
AT SORT OF THE VERY RIGHT HAND
SIDE OF YOUR CHART YOU'LL SEE --
AT TOWARDS THE END OF TWENTY
SEVENTEEN THE PROGRAM REACHED A
POINT WHERE THE LEVEL OF
DEFICITS ACTUALLY EXCEEDED IN
SOME QUARTERS THE LEVEL CREDITS
THAT WERE GENERATED IN SO THAT'S
A YOU USE THAT YOU KIND OF SEE
THOSE ARE CONVERGING AND SO
THAT'S PART OF THE FUNCTION OF
THE PROGRAM.
BECOMING A MORE STRINGENT --
AND SNOW MOVING FORWARD IT IF
THAT CONTINUES TO BE THE CASE
THEN SOME OF THE OPTIONS ARE
USING SOME OF THE BANKS CREDITS
TO COMPLY.
WITH THE PROGRAM --
IT ALSO [inaudible]
COURAGE AND BRING IN MORE LOW
CARBON FUELS THE MARKET
POTENTIALLY.
SO TURN TO PAGE FIVE OF YOUR
HANDOUT --
SO I JUST TALKED ABOUT AND OF
THE OVERALL LEVEL OF CREDITS
THAT ARE GENERATED THIS IS
REALLY JUST A FIGURE TRYING TO
GIVE YOU A SENSE OF YOU KNOW
WHAT IS THE SOURCE OF THOSE
CREDITS WHAT TYPES OF OF FUELS
HAVE BEEN USED TO COMPLY WITH
THE REGULATION --
YOU'LL SEE IT'S A A MIX OF YOU
KNOW A VARIETY OF DIFFERENT
FUELS THAT BIGGEST ONE BEING
EFFORT ALSO FAR BUT ALSO
RENEWABLE DIESEL.
BIODIESEL LECTURE CITY.
AND BIO METHANE.
AND THOSE HAVE BEEN ARE
INCREASING --
OVER THE LAST SEVERAL YEARS.
SO PAGE SIX OF YOUR HANDOUTS --
GIVES YOU A SENSE OF WHAT THE
PRICES FOR CREDITS IN THE
PROGRAM HAVE BEEN OVER THE LAST
SEVERAL YEARS AND I THINK THAT
THE FIRST THING THAT JUMPS OUT
IS THE SIGNIFICANT VARIATION AND
THE CREDIT PRICES OVER THE PAST
SEVERAL YEARS --
IN THEORY --
NEAR THE CREDIT PRICE REALLY
SORT OF REFLECTS THE COST OF
PROVIDING THAT LAST UNIT OF
LOWER CARBON FUEL ARE THAT LAST
CREDIT IN ORDER TO MEET THE
STANDARDS THAT ARE SET AND THE
PROGRAM --
SOME OF THE FACTORS THAT REALLY
KIND OF DRIVE THOSE PRICES THEY
COULD REALLY BE ON SORT OF THE
DEMAND OR SUPPLY SIDE FOR CREDIT
SO -- FOR
EXAMPLE SORT OF YOU KNOW AT THE
JUST THE OVERALL STRINGENCY OF
THE PROGRAM MEANS THAT NO MORE
DEFICITS ARE CREATED AND THAT
MEANS THERE'S A GREATER DEMAND
FOR PRICES AND SO THAT.
THAT HAS THE EFFECT OF THE
PUSHING UP PRICES ALL ELSE EQUAL.
ARE ON THE FLIPSIDE NEAR THINGS
THAT AFFECT THE SUPPLY OF OF
CREDITS IT'S REALLY --
YOU KNOW THE AVAILABILITY AND
COST OF DIFFERENT LOW CARBON
FUEL OPTIONS THAT ARE OUT THERE
ARE COMPLIANCE OPTIONS THAT ARE
OUT THERE SUCH A EXTENT THERE'S
A A BREAKTHROUGH IN SORT OF AN
ABILITY TO PROVIDE.
LOW COSTS CREDITS ARE LOW COST
FUELS --
THEN THAT --
ALMOST EQUAL HAS THE EFFECT OF
OF PUSHING ALLOWS CRISIS DOWN I
THINK SOME OF THE THE KEY
FACTORS THAT I WOULDN'T SORT OF
CLAIM TO KNOW ALL THE DIFFERENT
FACTORS THAT HAVE DRIVEN.
CHANGES ON ALLOWANCE PRICES THAT
YOU SEE IN THE CHART HERE.
I THINK A LOT OF THEM THAT ARE
DUE TO KIND OF REGULATE CHANGES
AND SORT OF THE STRINGENCY OR
SORT CHANGES IN REGULATION THAT
AFFECT THE STRINGENCY OF THE
PROGRAM --
THERE IS A PERIOD OF A FEW YEARS
AGO WHERE THE COURT KIND OF
FROZE THE STRINGENCY OF THE
PROGRAM WHILE CARB HAD --
TO REASSESS --
YES AND ADDRESS SOME SEQUEL --
AND APA ISSUES AND SO --
I THINK THAT WAS SORT OF AROUND
THE TIME WE SEE CAN SEE PRICES
GOING DOWN THAN CARPET TO KIND
OF RE ADOPT THE PROGRAM AND
ESTABLISH.
I SOME DIFFERENT BENCHMARKS
GOING FORWARD AND SOME OF THOSE
WERE A FAIRLY STRINGENT AS OC
SORT OF IN THE NEXT COUPLE OF
YEARS AND SO THAT YOU KNOW HAS
THE EFFECT OF OF POTENTIALLY A
MOVING PRICES UPWARD SO IT'S A
MIX OF SORT OF REGULATORY
CHANGES LARGEST MARKET --
MARKET FORCES THAT DRIVE SOME
THE CHANGES AN ALLOWANCE PRIZES.
AND THEN OF COURSE SAYS SINCE
CREDIT CAN BE BANKS THE YA
PRICES AND SENT TO SOME DEGREE.
ABOUT THE FUTURE AND WHERE IT'S
OUR FUTURE PRICES WILL BE AS
WELL.
SO IF YOU TURN TO PAGE SEVEN OF
YOUR HANDOUTS --
THE COMMITTEE HAS ASKED US TO
COME IN ON TO SO THAT THE CUTS
IN THE COST CONTAINMENT --
PROVISIONS IN THE REGULATION I
THINK PROP.
PERHAPS THE MOST NOTABLE ONE IS
THE CREDIT CLEARANCE MARKET
WHICH IS INTENDED TO LIMIT COSTS.
IN SOME RESPECTS SO GENERALLY
PARTIES CAN OUTSIDE OF THE
CRITICAL ACTS MARKET CAN --
INSURANCE AGREEMENTS WITH EACH
OTHER TO BUY AND SELL CREDITS --
HOWEVER IF A REGULATED PARTY
DOESN'T HAVE ENOUGH CREDITS TO
COMPLY IT CAN PURCHASE
ADDITIONAL CREDITS TO THIS SORT
OF SEPARATE CREDIT CLARENCE
MARKET --
AND SPORTY'S CAN ELECT TO SELL
THEIR THE CREDITS IF THEY HAVE
FOR A PRICE OF UP TO TWO HUNDRED
DOLLARS IN THE CREDIT CLARENCE
MARKET SO.
I AM I GET TED JUST KIND OF SOME
SOME OF OUR GENERAL COMMENTS ON
KIND OF FEEL HOW EFFECTIVE WE
THINK THAT MIGHT BE IN JUST --
CONTAINING COSTS BUT IT'S THE
THE THE GENERAL STRUCTURE OF IT.
SO YOU TURN TO PAGE --
EIGHT OF THE HAND OUT JUST A
COUPLE OF VERY BRIEF COMMENTS OF
JUST THE OVERALL --
AND ECONOMIC CONCEPTS BEHIND THE
AND THE LOW CARBON FUEL STANDARD
I MEAN IT ESSENTIALLY --
IT HAS THE EFFECT OF INCREASING
COSTS FOR HIGHER CARBON FUEL
SUPPLIERS AND REDUCING COSTS FOR
LOWER CARBON FUEL SUPPLIERS --
YET THE INCENTIVES WHICH ARE
PROVIDED IN THE FORM OF CREDIT
PRICES WHICH ARE BOUGHT AND SOLD.
ARE DISCOURAGED PRODUCTION AND
CONSUMPTION OF THE GOALS AND
COURAGE THAT PRODUCTION OF THE
LOWER CARBON FUELS --
AND SO IN THAT WAY IT MOVED UP
PROGRAM COMMIT THOUGHT SORT OF A
YOU KNOW SOMETHING OF A CHARGE
ON KIND OF HIGHER CARBON FUELS
AND AND AND THEN SORT OF
PROVIDING IT'S AN AD FOR LOWER
CARBON FUELS --
SELF JUST AS AN EXAMPLE WE
HIGHLIGHTED IN THAT --
IN THE HANDOUT SORT OF THAT
CREDIT PRICES OF A HUNDRED FIFTY
DOLLARS WHICH IS YOU KNOW
SOMEWHERE IN THERE IN THE
NEIGHBORHOOD OF WHERE CREDIT
PRICES ARE NOW --
THE PROGRAM LIKELY ADS SEVERAL
CENTS PER GALLON TO THE PRICE OF
DIESEL FOR EXAMPLE --
BUT THEN ON THE OTHER SIDE NOW
THAT CREDIT GENERATING FUELS THE
LOWER CARBON FUELS FOR EXAMPLE A
FUEL WITH CARBON INTENSITY OF OF
THIRTY CAN GET KIND OF A BENEFIT
OF OVER A DOLLAR PER GALLON
ASSOCIATED WITH SELLING THE
CREDITS THAT ARE GENERATED FROM
THAT -- FROM
THAT FUEL CELL AND JUST TO GIVE
YOU A SENSE OF CALM THE ROUGH
ORDER OF MAGNITUDE OF THINGS AS
THEY STAND RIGHT NOW --
AND THIS IS ALL DONE THROUGH
SORT OF THAT THE REGULATORY
MARKET THAT'S ESTABLISH SORT OF
THE GENERATING OF PRODUCTS IN
BUYING AND SELLING OF PRODUCTS.
UNLIKE FOR EXAMPLE THE ANNUAL
CAP AND TRADE PROGRAM WHICH IS
ANOTHER MARKET BASED SYSTEM NONE
OF THIS YEAR REALLY SORT OF
TOUCH AS A STATE ACCOUNT THERE'S
NO YOU KNOW THERE'S NOT REVENUE
COMING INTO A STATE ACCOUNT THEN
THE LEGISLATURE ALLOCATES IT'S
BUT ALL SET UP THROUGH A
REGULATORY.
STRUCTURE AND BUYING AND SELLING
OF CREDITS FROM --
PARTIES THAT ARE SUBJECT TO THE
REGULATION.
OF TURN TO PAGE NINE OF YOUR
HAND OUT --
I'LL JUST TOUCH ON SOME OF THE
MAJOR CHANGES THAT CARP IS
PROPOSING TO THE REGULATION AND
ITS CURRENT REGULATORY PACKAGE --
THE FIRST THING IS RELIGIOUS THE
THE PROGRAM TARGETS THEMSELVES
OF THE LEVEL OF CARBON INTENSITY
REDUCTION THAT ARE --
IN THE REGULATION.
AND THE SOLID BLACK LINE THAT
YOU SEE KIND OF SHOWS THE
CURRENT REGULATION AND THE LEVEL
OF CARBON INTENSITY REDUCTION --
STANDARD THAT'S IN THAT
REGULATION.
I YOU CAN SEE --
THAT THERE'S A PRETTY STEEP
DECLINE AND SORT OF THE THE
CARBON INTENSITY REQUIREMENTS --
COME BETWEEN TWENTY EIGHTEEN AND
TWENTY OTHERS THE 10% REDUCTION
STANDARD THAT IT'S KIND OF IN
THE CURRENT REGULATION THAT
WOULD CONTINUE OUT.
TO TWENTY THIRTY ARE THE
PROPOSAL WHICH IS THE DOTTED
LINE AND THE CHART --
YOU CAN SEE IS OUT LESS
STRINGENT OVER THE NEXT FEW
YEARS SO FOR NOW 201-8 THROUGH
OTHER EARLY TWENTY TWENTIES.
AND THEN --
BUT THEN SORT OF ESTABLISHES
THESE LONGER TERM TARGETS ON
CARBON INTENSITY CARBON
INTENSITY REDUCTIONS OUT TO
TWENTY THIRTY TWO A 20%
REDUCTION OUT.
TO TWENTY THIRTY SO --
THAT I THINK THE RATIONALE AND
OF THAT --
CARB IT'S PRESENTED IS REALLY
THAT KIND OF THIS APPROACH WOULD
AT TEND TO SORT OF SMOOTH --
SOME OF THE PRICES OUT OVER THE
LONG RUN --
AND STABILIZE SOME OF THE
INCENTIVES AND PROVIDE MORE
STABLE INCENTIVES --
FOR FOR THE DIFFERENT PARTIES
THAT ARE SUBJECT TO THE
REGULATION AND ALSO PREVENT SOME
POTENTIALLY SOME SHORT TERM
PRICE SPIKES IN THE NEAR TERM.
WILL ALSO AND OF A TRADING
LONGER TERM REDUCTIONS AS PART
OF THE THAT STATE'S OVERALL GOAL
TO MEET ITS TWENTY THIRTY
GREENHOUSE GAS TARGETS.
SO ARE YOU TURN TO PAGE TEN OF
YOUR HANDOUTS --
LET ME TOUCH ON ALL THE OTHER
REGULATORY CHANGES DELTA
HIGHLIGHT KIND OF THE FIRST TWO
THAT ARE HERE --
THERE IS A PROPOSAL TO CREATE A
ZERO EMISSION VEHICLE FUELING
INFRASTRUCTURE CREDIT SO.
THAT WOULD BE KIND OF CREDITS
AVAILABLE FOR NEW HYDROGEN AND
DC FAST CHARGER ELECTRIC VEHICLE
CHARGING STATIONS --
SO THOSE CREDITS WOULD BE
AVAILABLE.
ARE BASED ON SORT THE CAPACITY
OF THOSE NEW FUELING STATIONS.
I AND I THINK IT'S A SIGNIFICANT
BECAUSE THIS IS A A PRETTY
SIGNIFICANT DEPARTURE FROM KIND
OF THE WAY THE PROGRAM HAS BEEN
OPERATED TO DATE WHICH IS REALLY.
THAT THERE'S A HEAVY EMPHASIS ON
THE EMISSIONS ASSOCIATED WITH
PROVIDING AND THE COMPETENCY IS
SUCH A WITH PROVIDING THE ACTUAL
FUEL AND THEIR CREDITS ARE TIED
TO KIND OF PROVIDING THAT FUEL
OR IMPLEMENT SOME PROJECT.
THE KIND OF REDUCES THOSE
EMISSIONS IN THIS CASE --
THERE'S SOMETHING OF A SHIFT
WHERE CREDITS WILL BE PROVIDED
BY JUST HAVING THE
INFRASTRUCTURE AVAILABLE THAT
COULD PROVIDE THE FUEL EVEN IF
IT'S NOT ACTUALLY.
PROVIDING PROVIDING THAT FEELS
THAT TOOK A PRETTY SIGNIFICANT
PHILOSOPHICAL A SHIFT IN THE
PROGRAM --
AND THE SECOND ISSUE IS THAT
THAT THERE ARE EXCUSE ME THE
SECOND --
PROPOSED CHANGE THAT IS
HIGHLIGHTED HERE IS JUST
CHANGING SOME OF THE FUELS THAT
ARE SUBJECT TO THE PROGRAM AND
CAN -- FOR
EXAMPLE GENERATE CREDITS TO THE
PROGRAM SO --
THERE WOULD BE A CHANGE OF WHAT
HAD FOR EXAMPLE ALTERNATIVE JET
FUEL WOULD NOW BE SORT OF AN
ELIGIBLE FUEL FOR THE PROGRAM
WHERE IT COULD --
GENERATE CREDITS ASSOCIATED WITH
SORT OF LOWER CARBON JET FUEL
AND RIGHT NOW THAT'S THAT'S
CURRENTLY NOT PART OF THE
PROGRAM --
AND I THINK UP PRICE MOVE ON TO
THE NEXT PAGE PAGE --
ELEVEN JUST TOUCH BRIEFLY ON A
FEW ISSUES FOR LEGISLATIVE
CONSIDERATION AS YOU --
A UNDERTAKE YOUR YOUR OVERSIGHT
ACTIVITIES ARE THE FIRST WHICH
WAS -- I
THINK SCENE IN ONE OF THE OTHER --
CHARTS THE REPRESENTED EARLIER
BUT NOW IS WORTH HIGHLIGHTING
THAT THE CARBON INTENSITY OF THE
FUELS A STATEWIDE HAS REDUCED
SINCE THE PROGRAM BEGAN.
SO AVERAGE CARBON INTENSITY HAS
DECREASED BY MORE THAN 3% FROM
TWENTY TEN TO TWENTY SEVENTEEN
SO THERE HAVE BEEN SOME
REDUCTIONS.
LITTLE DIFFICULT TO DETERMINE
EXACTLY HOW MUCH OF THAT IS DUE
TO LTFS VERSES SOME OTHER
PROGRAMS BUT I THINK IT'S FAIR
TO SAY THAT NET SIGNIFICANT
PORTION OF IT PROBABLY IS
RELATED TO LCF US --
THE SECOND ISSUE IS THAT --
LTFS.
LIKELY AS NOT THE MOST EFFECTIVE
STRATEGY FOR REDUCING GREENHOUSE
GASES --
MEAN JUST TO GIVE YOU A SENSE OF
CREDIT PRICES FOR LCF AS
COMPARED TO ALLOWANCE PRICES IN
THE CAP AND TRADE PROGRAM.
BOTH OF WHICH ARE AT LEAST IN
THEORY SORT OF MANTRA FLECKED.
THE COST OF ENCOURAGING THAT
ADDITIONAL EMISSION REDUCTION
NEEDED TO MEET THE STANDARD IN
THE PROGRAM.
ACCREDIT PRICES AN LCI FASTS ARE
YOU KNOW ROUGHLY.
HUNDRED FIFTY I DOLLARS --
AROUND THAT --
CAPTURED ALLOWANCE PRICES ARE
FIFTEEN DOLLARS SO THERE'S SORT
OF A TEN FOLD EARLY ON THERE'S
THERE'S A SIGNIFICANT DIFFERENCE
BETWEEN THOSE --
AND JUST AND CONCEPTS --
I THINK SORT OF ECONOMIST SORT
OF WHY A DATE.
ANY OFTEN TEND TO PREFER SORT OF
ECONOMY WIDE PRICING LIKE CAP
AND TRADE PROGRAMS IS THAT --
YOU KNOW THINGS LIKE THE LOW
CARBON FUELS --
STANDARD ONLY TARGET CERTAIN
TYPE.
I'M GOING BACK TO THIS THIS
POLICY IS REALLY TARGETED JUST
AT THE CARBON INTENSITY OF FUELS.
BUT REALLY SORT OF NO INCENTIVES
FOR REDUCING EMISSIONS AND OTHER
SECTORS OF THE ECONOMY OR IN
OTHER WAYS --
AND SO THERE MIGHT BE SORT OF
LOW COST OPPORTUNITIES THAT ARE
OUT THERE THAT JUST THIS PROGRAM
DOESN'T --
SPIT KLAY --
ENCOURAGING SO IN ON SOMEBODY
THAT SORT OF YOU KNOW --
MIGHT NOT TO CAPTURE A SOME OF
THE OTHER LOW COST OPPORTUNITIES
THAT FOR EXAMPLE THE CAP AND
TRADE PROGRAM MIGHT --
THERE ARE NOW WITH THAT SAID I
MEAN THERE ARE SOME OTHER
CRITERIA THAT'S THE LEGISLATURE
WILL PROLLY WANT TO CONSIDER
WHEN ASSESSING THE PROGRAM SO
SOME OF THE OTHER STATED GOALS
FOR THE PROGRAM ARE FOR EXAMPLE
TO DIVERSIFY THE FUEL MIX --
AND PROMOTE INNOVATION AND FUELS
ON SORT OF IN SOME CASES MAYBE
THOSE FIELDS COULD BE --
TO SORT OF THE INNOVATION AND
DEVELOPMENT AND THOSE FUELS --
CAN HELP SORT LOWER COSTS FOR
OTHER JURISDICTIONS AND PRINT
PERHAPS I'LL ALLOW THEM.
TO A USE LOWER CARBON FUELS AND
REDUCE OVERALL GREENHOUSE GAS
EMISSIONS GLOBALLY --
AND REDUCE COAL POLLUTANT SO
THAT THOSE ARE OTHER FACTORS AND
SORT OF STATED GOALS FOR THE
PROGRAM --
AND THE LEGISLATURE JUST NEED TO
KIND OF EVALUATE THE EXTENT TO
WHICH THIS PROGRAM DOES ACHIEVE
THOSE GOALS AND WHETHER OR NOT
IT'S YOU KNOW IT'S WORTH
WHATEVER.
ADDITIONAL COSTS MIGHT AND YOU
KNOW REDUCTION AND COST
EFFECTIVENESS IN ORDER TO
ACHIEVE THOSE ALTERNATE GOALS
THAT -- THAT
MIGHT BE OF INTEREST TO THE TO
THE LETTERS.
AND THEN FINALLY A REAL QUICKLY
ON THE CREDIT CLEARING MARKET --
AND I THINK ARE AT LEAST KIND
INITIAL TAKE ON HAVING REVIEWED
THE CREDIT CLAIM MARKET IS THAT
YOU KNOW DOESN'T UNLIKE THE CAP
AND TRADE PROGRAM FOR EXAMPLE
WHICH RECENT LEGISLATION LAST
YEAR SORT OF REQUIRED A HARD
PRICE CEILING ON THE ON THE
CREDITS OR ALLOWANCES THROUGH
THAT PROGRAM.
OUT THIS MECHANISM DOESN'T
REALLY HAVE THAT SAME TYPE OF
STRUCTURE --
YEAH THERE'S NO SORT OF
ADDITIONAL SUPPLY OF CREDITS
THAT THE OF THAT STATE WILL BE
ISSUING AN ORDER TO SERVE ENSURE
PRICES STABLE OUR PARTICULAR.
LEVEL SO IN THAT WAY IT DOESN'T
WORK CREATE BE KIND OF HARD CAP
THAT YOU HAVE SOME OF THE OTHER.
NOT CLIMATE POLICY MECHANISMS
THAT WE HAVE A DOES --
BUT THERE IS I THINK IT IS WORTH
NOTING THERE IS SOME OTHER
FLEXIBILITY AND THE PROGRAM
WHERE -- IF
AN ENTITY IS UNABLE TO KIND OF
OBTAIN ENOUGH CREDITS TO COVER
ITS DEFICITS IN A PARTICULAR
YEAR.
THEN THERE'S SORT OF A A A
WINDOWS SORT OF FIVE YEAR WINDOW
WHERE YOU THINK THEY CAN KIND OF
CARRY OVER THAT DEFICIT.
THINKER SOME INTEREST BUT THEY
CAN KIND OF THE NOTHING GET
ENOUGH ALLOWANCES OR CREDITS IN
A FUTURE YEAR THINKING OUT OF
USE THOSE TO COMPLY SO THEIR SON.
AND FLEXIBILITY BUILT INTO IT
THAT IT'S INTO AND CREDIT PRICES --
BUT THERE'S NOTHING SORT OF OVER
THE LONG TERM IF --
THE LEVEL CREDITS ARE SORT OF
INSUFFICIENT TO MEET THE DEMAND
FOR THOSE CREDITS THAT WOULD
PREVENT PRICES FROM --
FROM -- FROM
EXCEEDING THAT TWO HUNDRED
DOLLAR CAP THAT'S IN THE THE
CREDIT CLEARANCE MARKET.
SO -- THAT'S
MY ATTEMPTED AND RUNNING THROUGH
THE LC HAVE BEST PROGRAM VERY
QUICKLY I'M SURE YOU HAVE.
QUESTIONS FOR ME AND OTHERS ARE
HAPPY TO ANSWER THEM.
THAT NOW I APPRECIATE THAT THANK
YOU FOR THE OVERVIEW --
BUT LET ME.
GIVE A COLLEAGUES OPPORTUNITY IF
HEY WANT TO SAY ANYTHING --
NOW IT'S NOT THAT WE'RE JUST
GOING TO GET IN THE QUESTIONS
[inaudible]
OKAY.
TWITTER THAT THANK YOU MISTER
MISTER BROWN I APPRECIATE THAT
THE OVERVIEW.
WE'RE LOOKING AT I JUST.
ALWAYS LOTS OF QUESTIONS.
BUT IN AND APPRECIATE YOU
STARTED OFF BY SAYING THAT THE
LA EYES THAT LOOKED --
AT LC OFFENSIVE DEATH IT YUBA
YOU'VE DONE THIS YOU PREPARED
THIS WEEK WE APPRECIATE THAT.
BUT I DO HAVE A NUMBER OF
QUESTIONS AND ONE OF YOU.
FIRST BEGINNING YOU TALKED ABOUT
THE TWENTY SEVENTEEN DEFICITS
EXCEED CREDITS OF THE MARKET
SYSTEM.
I WAS JUST WONDERING ITALY THAT
WAS YOUR SLIDE ON PAGE.
PAGE FORWARD AND THINK YOU MIGHT
HAVE TALKED ABOUT THIS BUT WE
SEE IN THE I WAS JUST.
ONE AND TWENTY SIXTEEN TWENTY
SEVENTEEN YOU SEE THE AVOID
EVERY SAID THE DEFICITS THE
INCREASE IN THE DEFICITS
[inaudible]
CORRECT.
SO IN TWENTY SIXTEEN TWENTY
SEVEN YOU SEE THAT INCREASE BUT
WAS AT ALL RELATED BECAUSE OF
THE COURT CASE WHO WAS.
OVER THE OTHER.
FACTORS THAT --
THE WEB I MEAN I BELIEVE THE
THEY GONNA BIGGEST EXPLANATIONS
FOR THE INCREASE IN DEFICIT THAT
REALLY I MEAN YOU KIND OF SEEN
THE A STANDARD THAT SOME PLACE
THE SORT OF BENCHMARK A CARBON
INTENSITY STANDARD.
GOING DOWN SO THE OTHERS SORT OF
YOU KNOW THAT THIS STANDARD
BECOMES MORE STRINGENT OVER TIME
AND SO THAT MEANS. FOR EXAMPLE
FOR SORT OF A GIVEN LEVEL OF OF
GASOLINE SUPPLIED --
YOU'RE GENERATING SORT OF MORE
DEFICITS BECAUSE IT'S IT'S A
SORT OF A YOU KNOW GIVEN CARBON
INTENSITY UPS OR GASOLINE LET'S
SAY.
YOU'RE GENERATING JUST MORE
DEFICITS FOR THE GIVEN LEVEL AS
THE SORT OF STANDARD RATCHETS
DOWN AND SO I THINK THAT'S AT
THE BIG EXPLANATION I MEAN YOU
KNOW.
OTHER FACTORS THAT AFFECT JUST
LEVEL DEFICITS ARE ALSO JUST THE
OVERALL CONSUMPTION OF DIFFERENT
FUELS SO IF NO MORE FUELS ARE
BEING.
ART MORE HIGHER CARBON FIELD IN
PARTICULAR BEING --
CONSUME THEM THAT THAT INCREASES
THE OF THEIR THE STANDARD
BECOMING MORE STRINGENT OVER
TIME AND THAT RESULTS IN ALL
ELSE EQUAL MORE DEFICITS.
MONTH AS WE REACH TWENTY TWENTY
RIGHT.
GOTTEN ORDER THE REVIEWS THAT
WERE EXPECTING THAT TO GENERATE
FROM.
FROM JUST THE CREDITS --
SO THERE'S THERE'S NO REAL KIND
OF STATE REVENUE --
ASSOCIATE WITH THIS SO THEY CAN
A MENTION THAT THIS WAS GONNA
THROUGHOUT ITS ALL SORT OF MARK
QUEEN.
BETWEEN VARIOUS PARTIES THAT ARE
PART OF THE REGULATION.
I AND I THINK WE JUST WE DID
SOME KIND OF ROUGH BACK OF THE
ENVELOPE.
NUMBERS ON SORT OF YOU KNOW AT
AT CREDIT PRICES OF HUNDRED
DOLLARS AND YOU KNOW THERE WERE
ROUGHLY. TEN MILLION CREDITS
GENERATED AND TWENTY SEVENTEEN
SO THAT HUNDRED DOLLARS EACH
THAT'S ABOUT YOU KNOW A BILLION
DOLLARS WORTH OF SORT OF VALUE
AND LCF CREDITS THAT WERE
GENERATED.
SO ANY OTHER VALUE THOSE CHANGES
OVER TIME SO THAT YEAH THERE'S
NOT THAT ROUGH AMBER BUT ARGUED
THAT GIVES YOU A TOTAL GENERAL
SENSE I THINK.
GOT IT NOW DOES THE LC IF ASKED
COMPLEMENT EXISTING PROGRAMS AND
REGULATIONS INTENDED TO REDUCE
GHG YOU TALKED ABOUT IT I KNOW
TOWARDS THE END OF YOUR
PRESENTATION AND SOME OF THE
OTHER THINGS.
I YOU MENTIONED CAP AND TRADE
BUT KNOW IS IT THIS IS THE BEST
USE OF TACKLING --
THOSE REGULATORY GOALS.
YEAH I MEAN I GUESS --
IT'S IT'S CUMPLIR HITS
COMPLICATED I GOT SOME IN THERE
ARE KIND OF COMPLICATED --
INTERACTION IN ON THE ONE HAND.
YOU'VE THEIR OTHER POLICIES THAT
TARGET OTHER PARTS OF KIND OF
THE TRANSPORTATION SECTOR LIKE
VEHICLE EFFICIENCY AND VEHICLE
MILES TRAVELED AND SO THIS KIND
OF THING YOU KNOW CATCHES THAT
THIRD.
LAGGED -- I
THINK AT A HIGHER LEVEL THOUGH --
NEAR THE THE KIND OF CAP AND
TRADE PROGRAM WE SEE AS SORT OF
THE YOU KNOW IT SHOULD BE SORT
OF A CENTRAL PIECE OF THE
STATE'S CLIMATE BALL GOAL --
KIND OF POLICIES --
IN ORDER TO ACHIEVE ITS GOALS
BECAUSE WE DO THINK IT'S LIKELY
THE MOST COST EFFECTIVE --
I THINK YOU KNOW SOME OF THE THE
REASONS WHICH WE HAVE THE
COMMITTEE WILL WANT TO KIND OF
ASSASSIN ENGAGED AS A KIND OF
ASSESSES.
THE THE LCF ASSN KIND OF THE
ROLE THAT YOU PLAY AS IN OTHER
CASES WHERE THE CAP AND TRADE
PROGRAM FOR EXAMPLE DOESN'T
ENCOURAGE FOR WHATEVER REASON
DOESN'T KIND OF PUSH ENOUGH
INNOVATION IN A PARTICULAR AREA
IN A PARTICULAR.
A SECTOR OF THE ECONOMY FOR FOR
ONE REASON OR ANOTHER AND SO IT
WAS THEIR NEED FOR AN ADDITIONAL
POLICY THAT KIND OF HELPS.
PUSH THAT PARTICULAR SECTOR FOR
WHAT FOR ONE REASON OR ANOTHER --
AND AND THOSE TYPES OF THINGS
HAVE YOU KNOW THAT.
WE THINK THOSE ARE KIND OF THE
QUESTIONS TO BE ASKING AND
THINKING ABOUT WHAT'S THE VALUE
OF OF HAVING SOME OF THESE OTHER
POLICIES ON TOP OF CAP AND TRADE
I GUESS THAT THE FINAL THING IS.
NOW COVENTRY DOESN'T COVER ALL
EMISSIONS AND SO ON THE OTHER
MISSIONS KIND OUTSIDE OF THE CAP
WHICH ENDS IN SOME OF THOSE
EMISSIONS ARE.
A AND REDUCTIONS IN THOSE
EMISSIONS ARE BEING INCENTIVIZE
BY SOME OF THE LTFS OF SOME OF
THE METHANE EMISSIONS FROM.
THE AGRICULTURAL AND AREAS FOR
EXAMPLE YOU KNOW YOU THERE ARE
SOME SORT OF INCENTIVES IN THIS
PROGRAM TO DO KIND OF ENCOURAGE.
EMISSIONS REDUCTIONS IN THAT
AREA AND SO YOU KNOW WHEN I
THINK ABOUT YOU KNOW THAT MAYBE
THERE IS SORT OF A ROLE FOR
OTHER POLICIES TO KIND OF THEIR
DEATH FOR HIS ROLE FOR THE
POLICIES.
TO TRY TO ENCOURAGE THOSE TYPES
THE REDUCTIONS GOT SO FROM YOUR
ANALYSIS THE WAY YOU'VE LOOKED
AT IT THOUGH IN TALKING ABOUT
LIKE SAY THE CAP AND TRADE
PROGRAM.
MAN IS ELSIE VESTS A DUPLICATIVE
IS ARE WE I MEAN.
I THINK THERE THERE ARE
DEFINITELY --
SOME REDUCTIONS THAT OCCURRED
THROUGH THE LCF* PROGRAM
THAT'S WHERE FOR EXAMPLE IF
YOU'RE KIND OF YOUNG TRADING
LASTS -- NO
GASOLINE CONSUMPTION THEN --
YET THOSE ARE MISSIONS THAT ARE
UNDER THE CAP AND TRADE PROGRAM
AND AS LONG AS IF THE CAP AND
TRADE PROGRAM IS STRINGENT OFTEN
BINDING.
AND THOSE WOULD HAVE OCCURRED --
ANYWAY ISN'T IT MIGHT JUST BE
SORT OF MIX IT IN YOU KNOW --
SORT OF SHUFFLING EMISSION
REDUCTIONS AROUND --
THAT SAID AS THEY GONNA MENTION
I MEAN THAT THERE ARE SOME --
RATIONALE FOR HAVING SOME OF
THESE OTHER POLICIES FOR EXAMPLE
IF YOU KNOW YOU REDUCING
EMISSIONS FROM OUTSIDE OF THE
CAP WHICH THIS PROGRAM DOES NOT
WHETHER THIS IS THE THE EXACT
RIGHT PROGRAM TO DO THAT IS IS
COME ANOTHER QUESTION.
OR IF YOU'RE TRYING TO SORT OF
PUSH INNOVATION OUR PARTICULAR
AREA SO IN THIS CASE AND SORT OF
LOW CARBON.
FUELS FOR FOR SOME REASON YOU
FEEL LIKE SORT OF THEIR YOU KNOW
THAT THE CAP AND TRADE PROGRAM
OR SOME OF THE OTHER POLICIES
ARE GOING TO DO THAT.
WELL ENOUGH THEN THERE IS SOME
SOME RUSSIAN OUT THAT'S WHAT YOU
KNOW THAT'S A COMPLICATED ANSWER
NINE YOU KNOW I DIDN'T YEAH YEAH
I DON'T I DON'T HAVE SORT OF A A
DIRECT BUT I THINK THESE ARE
JUST SORT OF SOME OF THE FACTORS
THAT.
NOW THE COMMITTEE IN THE
LEGISLATURE WILL I PROBABLY WANT
A BALANCE OF THAT SORT OF A
ASSESSES THE PROGRAM.
YEAH NOTED THAT SOME OF THOSE
ARE THE MAJOR FACTORS THAT WOULD
INFLUENCE PRICE FOR THE LC
EFFECTS CREDITS AND AS WE
CONTINUE TO LOOK AT IT
[inaudible]
RIGHT YEAH [inaudible]
BECAUSE GOOD DEFENSIVELY
MARATHON AS JUST GOING TO SAY I
MEAN THAT THE BIGGEST THING
WE'RE GETTING ASKED BACK HOME IS
WHY ARE WE DOING THIS TWICE.
AND YOU KNOW IN IN SOME OF THE
SLIDES AND SOME OF THE OTHER
MATERIALS YOU KNOW IT'S LIKE I
ARE YOU CONFUSED BY ALL SELF ES
VERSUS KEVIN TRAVERS ALL THESE
OTHER PROGRAMS.
SO MAKING YOU REALLY JUST KIND
OF BREAK THAT DOWN AND THE THE
MOST PLAIN LANGUAGE YOU POSSIBLY
CAN -- YES
OF FOLKS AT HOME CAN UNDERSTAND
YOU KNOW WHAT'S ACTUALLY GOING
ON BECAUSE OF AND WITH WITH
CALIFORNIA WHERE THE HIGHEST
REGULATED STATE.
INSERTED TO BREAK IT DOWN AND
AND FOR US GOING BACK HOME YOU
KNOW WE'VE GOT TO GO LAW THERE'S
THIS PROGRAM THAT REGULATES YOU
HERE BUT THERE'S THIS PROGRAM
THE REGULATION HERE BUT THEY'RE
BOTH REGULATING ALONG SOME THE
SAME LINES BUT YET DIFFERENT.
SO I MEAN JUST KICKING EVERY
THAT DOWN FOR THE FOLKS AT HOME
LISTENING YEAH I MEAN AND AND
THAT I'M PROBABLY NOT THE BEST
PERSON TO SORT OF ANSWER YOU
KNOW WHY WE'RE DOING IT TWICE A
MEANS OF THAT THE OF THE WORD WE
DIDN'T COME. TO RECREATE THE
PROGRAM AND I THINK THAT.
THE IF THE EXPLANATION THAT --
I SEEM TO HEAR MOST OFTEN IS
JUST SORT OF YEAH.
ó LOW CARBON FUELS WILL NEED
TO BE SORT OF A SIGNIFICANT PART
OF SORT OF THAT THE STATE'S --
KIND OF CLIMATE PUBLIC THEY'VE
THEY WILL NEED TO BE SORE THE
NEXT THE SINGING PART OF THE
STATE'S ENERGY MIX GOING FORWARD
AND THERE ARE SORT OF
TECHNOLOGICAL BARRIERS AND
CHALLENGES TO KIND OF PROVIDING
THOSE TYPES OF LOW CARBON FUELS
AND SO.
THERE NEEDS TO BE SOME SORT OF
AN EXTRA PUSH IN THAT AREA
BEYOND WHAT'S THE INCENTIVE THAT
ARE BEING PROVIDED AND CAP AND
TRADE AND THAT THAT THAT'S IS --
THIS IS KIND OF THE POLICY THAT
THAT DOES THAT SOUND
[inaudible]
ALRIGHT.
SO ON THAT I MEAN --
FROM YOUR PERSPECTIVE THAN FOR
LCF HAS HAS IT GROWN IN STATE
PRODUCTION OF ALTERNATIVE FUELS
AS WE AND I MEAN THAT THAT'S NOT.
A PIECE OF DATA I GUESS THAT
WE'VE LOOKED AT INDEPTH ME THAT
I I THINK IT DOES PROVIDE
INCENTIVES FOR YOU KNOW --
PRODUCERS BOTH IN STATE AND OUT
OF STATE TO TRY AND FIND WAYS TO
REDUCE THE CARBON INTENSITY OF
THEIR FUELS.
ARM I DON'T KNOW I DON'T HAVE
SORT OF OFFHAND SORT OF A
BREAKDOWN OF YOU KNOW HOW MUCH.
HOW MUCH OF THAT REDUCTION IN
THAT SORT THE CREDITS THAT HAVE
BEEN GENERATED COULD HAVE COME
FROM IN STATE VERSES OUT OF
STATE NOW?
IT'S KIND OF CURIOUS SEE IF
THEY'VE BEEN TRYING TO DO IT IF
THERE'S A A CREDIT MARKET FOR IT
THEN I WOULD IMAGINE SOME PEOPLE
WOULD.
RUSHED TOWARDS.
TO RUSH TO FILL THAT NEED THAT
NAY UNDER CERTAIN LIST OF IT
DOES IT DOES PROVIDE AN
INCENTIVE FOR YOU KNOW PRODUCING
LOWER CARBON FUELS TO TO
PRODUCERS THAT ARE --
BETTER AND STATE I DON'T KNOW
AND YOU KNOW AND PRACTICE SORT
OF HOW MUCH OF THAT.
HAS OCCURRED HOW MUCH OF THE
REDUCTIONS IN ACCORDANCE YEAH
WHICH THAT KINDA GOES INTO --
THE DISCUSSIONS WE'VE BEEN
HEARING ABOUT FOR A REGIONALLY
BASED LCF US.
NEPHEW LOOKED AT WHAT THAT WOULD
ACTUALLY MEAN FOR THE STATE OF
CALIFORNIA OR HOW THAT WOULD
EVEN BE.
TACKLED FROM A POLICY
PERSPECTIVE.
I AM I HAVE NOT LOOKED AT KIND
OF THE ANY PROPOSAL TO END OF
REGIONALIZED THE LCF ES UM.
I THINK THAT MY SHORT SORT OF
INITIAL RESPONSES THAT YOU KNOW
IT COULD BE MATTER QUITE
COMPLICATED --
I'M AND I THINK WE WERE SEEN AND
I THINK YOU KNOW THE ANALOGY TO
KIND OF THE CAP AND TRADE MARKET
IS NO TO SOME CHALLENGES WITH.
KIND OF TRYING DEBT TO LINK
PROGRAMS WITH OTHER
JURISDICTIONS AND YA FATE CHANGE
COURSE YOU KNOW HOW DO YOU DEAL
WITH THOSE CHANGES HOW HE SORT
COORDINATE PROGRAMS BETWEEN.
A DIFFERENT JURISDICTIONS
CREATES JUST.
A BIT OF A CHALLENGE BUT I MEAN
THERE THERE COULD BE POTENTIAL
TO TO THE EXTENT YOU'RE LINKING.
A KIND OF ENCOURAGING THE THE
LOWEST CARBON --
HEARD THE LOWEST COST SORT OF A
MISSION THEY'RE ON BUT THAT'S
JUST SORT OF MY CONCEPTUAL FIRST
TAKE ON THE ISSUE I DON'T I
DON'T KNOW THAT HAPPENING MORE
AT THIS POINT.
GOT IT I APPRECIATE THAT --
SO BASED OFF OF WHAT YOU HAVE
ANALYZE YOU KNOW AGAIN EVERY
SAID.
DID LOOK AT IT COMPLETELY AND
DEATH.
BUT WATER BECAUSE SOME OF THE
LEADING ANSWERED WITH THE
PROPOSED CHANGES IN THE CARBON
INTENSITY PRODUCTION TIMELINE.
A PROPOSED BY AIR BE --
I MEAN.
I ICE I SUSPECT THESE ARE NOT
NECESSARILY CONCERNS FROM OUR
OFFICE BUT I THINK YOU KNOW
THEY'RE JUST THAT THE STANDARD.
I WOULD GO OUT TO TWENTY THIRTY
AND WOULD GO DOWN TO YOUR 20%
REDUCTION STANDARD BY TWENTY
THIRTY AND SO I THINK --
I SPECTACLE OF WE KNOW ONE OF
THE THE LEADING CONCERNS WOULD
BE JUST KNOW IT'S THERE WILL
THERE BE ENOUGH.
AND OF LOWER COST --
FUELS AVAILBLE IN ORDER TO MEET
THAT STANDARD YARDS THAT WHAT AT
WHAT ARE THE THE COST GOING TO
BE IN ORDER TO MEET THE THE LONG
TERM STANDARD WILL BE SORT OF
ENOUGH --
LOW COST FUELS AN EMISSION
REDUCTION OPPORTUNITIES TO MEET
THAT STANDARD --
YOU IN THE NEAR TERM THAT THE
STANDARD IS A BIT LESS STRINGENT
AND SO SORT OF THE OF THE
OUTSIDE OF THE NOT THE OPPOSITE
EFFECT OVER THE NEXT FEW YEARS
BUT OVER THE LONG TERM I THINK
YOU KNOW IT'S JUST IT'S THAT
CONSTRUCTING THIS RIGHT BALANCE
BETWEEN.
THE COSTS AND THE EMISSION
REDUCTIONS OF THAT THE STATE
WANTS TO ACHIEVE.
MAYBE I'LL ASK ONE OF OUR LATER
PANEL THAT SAME QUESTION.
WITH RATE WITH THAT --
IT IT BRINGS ME BACK --
TO TRANSPORTATION HEARING WE HAD
WITH THE HIGH SPEED RAIL
AUTHORITY IN THERE WANTING.
TO THEY EXTEND THE DATES FROM.
TWENTY THIRTY TWENTY FIFTY THE
STAINING THAT TIMELINE I MEAN
WE'VE GOT THE PROGRAM WE'VE GOT
EVERYTHING SET UP IN IN IN MARCH
THAN EVERYBODY IN INDUSTRIES RT.
YOU KNOW PLANNING EVERYTHING OUT
SO I MEAN.
BUT WHAT ARE YOUR THOUGHTS ON IT
DOES EXTEND IN THAT PROGRAM JAM
BECAUSE THEY COULD COMPLETELY
CHANGE ALL THE TARGETS --
AND I APOLOGIZE JUST IT JUST TO
CLARIFY MISS HER ASSEMBLY MEMBER
SO WE TALKING ABOUT THAT CAP AND
TRADE PROGRAM OR THE LCF US CAP
AND TRADE YEAH.
OKAY -- YEAH
I MEAN YEAH RIGHT NOW THE
LEGISLATURE HAS SET ITS
GREENHOUSE GAS TARGETS OUT TO
TWENTY THIRTY AND THAT'S KIND OF
AUTHORIZED A PROGRAM THROUGH
TWENTY THIRTY I MEAN I THINK.
YANICK EXTENSION BEYOND THAT
REQUIRE SOME LEGISLATIVE
ASSESSMENT OF CUT WHERE IT WOULD
LIKE TO SET ITS TARGETS AND IF
IT DOES YOU KNOW IF IT DOES HAVE
SORT OF AMBITIONS.
FOR MORE AGGRESSIVE LONGER TERM
GREENHOUSE GAS TARGETS THAT WE
THINK YOU KNOW HAVING A CAP AND
TRADE PROGRAM TO HELP ACHIEVE
THAT MAKES.
A LOT OF SENSE BUT THAT'S A A
BIG SORT OF POLICY DISCUSSION
THAT THE LEGISLATURE.
I SHOULD HAVE AND I THINK THERE
IS GOOD QUESTIONS ABOUT WHEN.
OUT OF THAT ADDITIONAL AUTHORITY
SHOULD BE GIVEN YOU KNOW SHOULD
SHOULD BE GIVEN EARLIER WHICH
PROVIDE SOME MORE MARKET
CERTAINTY YOU KNOW TO THE EXTENT
YOUR SORT OF PROVIDING LONGER
TERM TARGET SOME LONGER TERM
AUTHORITY THAT DOES PROVIDE.
SOME BENEFIT FOR MARKET
CERTAINTY BUT NOBODY YET THE
LEGISLATURE ALSO OR THAT ONLY
THAT AND THAT WOULD USE THE
GOALS OF THOSE.
YOU'VE GOT BOND GOING ONE WAY
AND ONE GOING THE OTHER WAY.
I MEAN IT CHANGES THINGS A LOT.
YEAH I MEAN IT WILL YOU KNOW.
IT MAKES SENSE TO MAKE THOSE
TYPES OF DECISIONS AND SORT OF
THE CONTEXT OF IT WHAT WHAT IS
THIS SORT OF SWEET OF POLICIES
DO WE DO WE THINK ARE GOING TO
BE USED IN OUR SORT OF
REASONABLE AND COST EFFECTIVE
AND ACHIEVE ALL THE DIFFERENT
GOALS THAT.
THAT WE HAVE IN PARTICULAR THE
GREENHOUSE GAS GOALS AND AND HOW
THEY SORT OF YEAH AROUND IT AND
I KNOW.
THE BURKE KIND OF PUT YOU ON THE
SPOT WITH THAT BUT NOW I MEAN I
THINK THESE ARE ALL KIND OF GOOD
QUESTION YOU KNOW HOW KIND OF
HOW FAR OUT TO SET YOUR GOALS
WHICH POLICIES.
ARE DO YOU THINK ARTS ARE THE
MOST EFFECTIVE AND COST
EFFECTIVE IN ACHIEVING THOSE
GOALS.
ARE YOU HOW ARE THEY ALL SORT OF
IN IRAQ CONFLICT TOGETHER ALL
SORT OF VERY GOOD QUESTIONS THAT
YOU KNOW --
YET DESERVE A LOT OF LEGISLATIVE
THOUGHT IN CONSUMER GUIDE AND
THAT'S ONE OF THE BIGGEST
CHALLENGES WE ALWAYS HAVE
MULTIPLE PROGRAMS INTO FOR
MECHANICS WORKING AND HOW DO WE
FIT ALL THOSE TOGETHER AND AND
KEEP THINGS RIGHT AND THE RIGHT
WAY.
GINGERLY PUT AFFORDABLE YEAH
YEAH I MEAN I I I I CAN'T AGREE
MORE AND I THINK TO SORT OF GET
GIVEN SOME MY TESTIMONY I THINK --
HOPEFULLY SORT OF JUST THE
COMPLEXITY AND SORT OF YOU KNOW
HOW FITTING ALL THE DIFFERENT
PIECES TOGETHER --
IT'S SORT OF YOU KNOW --
HIGHLIGHTS KIND OF THE NEED TO
TO MAKE SURE THINGS ARE ARE
COORDINATED AND THINKING ABOUT
YOU KNOW WHAT'S WHAT'S THE BEST
PATH FORWARD WHAT'S THE BEST MIX
OF POLICIES.
GOT AND AS WE START HAVING THOSE
GOALS AND TURN AND REACH THOSE
THAT THOSE EMISSION REDUCTION
GOALS.
YEAH I DON'T KNOW IF I SHOULD
ASK YOU THIS IF YOU SAW THE
ANALYSIS PROSTHETICS PANEL.
BUT HOW MANY HOW MANY OTHER
PRODUCER GAS PRODUCERS I GUESS
ARE MEETING THOSE BY PLEDGING
THEIR FUELS AS OPPOSED.
TO ANOTHER MECHANISM BE THERE BY
HER CREDITS.
DID YOU SEE THAT IN YOUR
ANALYSIS OF NOT I CAN PROBABLY
ASKED NEXT PANEL --
THAT YOU'RE SOME OF THE OTHER
PANELISTS MIGHT HAVE SOME MORE
THEY PROBABLY DO HAVE SOME MORE
DETAILED INFORMATION AND I THINK
THAT CHART ON PAGE FIVE OF THE
HAND OUT GIVES YOU.
THE LEAST IN BROAD STROKES KIND
OF THE SOURCE OF THE CREDITS
THAT HAVE BEEN GENERATED SO FAR --
YOU KNOW AND SO THE BIGGEST
PIECE OF THAT SO FAR HAS BEEN
NOTHING ALL THAT YOU SEE SOME
INCREASES AND QUITE A FEW OTHER
TYPES OF FUELS THAT HAVE BEEN
USED TO GENERATE CREDIT SO FAR
SO.
BOTH IN EACH ONE OF THOSE
CATEGORIES THERE'S RIGHT IF --
I'M SURE THERE ARE SOME OF THE
OTHER PANELISTS WOULD NOT HAVE
SOME MORE DETAILED INFORMATION
ON THAT GOT.
I APPRECIATE THAT SO.
MY OF GOD I JUST JUST COULD MY
WIFE MENTION THIS TO ME THE
OTHER DAY THAT THERE'S A QUORUM
SHORTAGE GOING ON AND YOU CAN'T
BUY CORN ON THE COB AGO SHE
SHORING HOUSE OF THE INCREASE IN
ETHANOL AFFECTING THAT.
I DON'T KNOW [inaudible]
I YEAH --
GROCERY STORE DISCUSSION.
I I I I DON'T KNOW I'D BE HAPPY
TO SPEND A LITTLE BIT OF TIME
TRYING TO KIND OF LOOK INTO IT
BUT I I I CAN'T SAY THAT I KNOW
THE ANSWER THAT.
GOT IT --
NIGHT [inaudible]
INTERESTING QUESTION OF BUT
PROCEDURE LOOKING INTO THIS
MISTER RATHER THAN OBVIOUSLY AS
I AIR REVIEW GETS TO ROLL OUT --
THEIR REGULATIONS AND AS WE
CONTINUE TO CONSIDER SOME OF
THOSE POLICY DISCUSSION WE MAY
MAKE CALL ON THE LA THOUGH TO
LOOK.
A LITTLE BIT FURTHER IN DEPTH
AND HELPLESS.
LOOK IN A NONPARTISAN MANNER --
INTO SOME OF THESE ISSUES AS WE
THAT CONTINUE TO NOT ONLY LOOK
AT THE REDUCTIONS BUT ALSO THE
COSTA.
THE COST AND THE EFFECTIVENESS
OF THE PROGRAMS SPECIAL WE HAVE
OTHER PROGRAMS OF SEEM TO BE
DUPLICATING SOME OF THOSE
EFFORTS.
WE THE THE CAP AND TRADE PROGRAM
RUNNING PROGRAM THAT MAY BE
IMPLEMENTED AS WE AS WE MOVE
FORWARD AS A AS A POLICY MAKERS
HERE IN THE LEGISLATURE BUT WITH
THAT [inaudible]
BEFORE WE INCLUDE I WOULD ASK IF
THERE'S ANY LAST MINUTE
QUESTIONS FROM.
ANY OF THE MEMBERS.
HEARING INSING KNOWLEDGE WAS A
THANK YOU APPRECIATE YOUR
TESTIMONY AND THAT IF SOMEBODY
WANTS A COPY --
HAVE WHICH PROVIDES US ALL THE
LA WEBSITE.
IT IS IT IS IT IS.
ALRIGHT THANK YOU.
VERY MEMBERS IS GOING TO MOVE --
TO PANEL BE WHICH IS A REGULATED
PARTIES --
FIRST ROLL I BEGIN WITH
TESTIMONY BY KATHERINE RESPOND A
PRESIDENT OF THE WESTERN STATES
PETROLEUM ASSOCIATION.
AND NEXT WE HAVE DINA KAPOOR
FROM CAL COALITION FOR NATURAL
GAS.
AND THEN I'D LIKE TO INVITE UP A
NEW COLLAR CO PACIFIC ETHANOL.
AND FINALLY WILL HAVE JOKER XIN
REPRESENT OF THE CALIFORNIA
ADVANCED.
BIOFUELS A ALLIANCE WE HAVE ALL
YOU GUYS COME UP TO SHE TO GUYS
BEING HERE WITH US FOR FIRST.
HEARING --
BUT LET'S COULDN'T HIDE HIS WILL
BEGIN WHAT TESTIMONY OF THAT
AFTERWARDS WE JUST AWESOME
GENERAL QUESTIONS THE ENTIRE
PANEL THAT'S OKAY HAS VERY
ALRIGHT.
IT'S GOOD TO BEGIN THANK YOU.
BOTH GOOD AFTERNOON CHAIRMAN
SALICIN MEMBERS OF THE SELECT
COMMITTEE I'M CATHY REVISED BOYD
PRESIDENT THE WESTERN STATES
PATROLMEN'S ASSOCIATION AND I
REPRESENT THE OIL AND NATURAL
GAS PRODUCERS AND REFINERS IN
THE STATE OF CALIFORNIA.
I REALLY WANT TO THANK YOU FOR
ALLOWING US TO BE HERE AND
REALLY THANK THE COMMITTEE AND
AND YOU CHAIRMAN SALAS FOR
HAVING A CONVERSATION ABOUT A
SUSTAINABLE ENERGY FUTURE
BECAUSE IT'S A REALLY IMPORTANT
ONE FOR ALL OF US TO HAVE --
AND BEFORE I TURN TO THE LOW
CARBON FUEL STANDARD I JUST
WANNA.
NOTE BOMB RELATIVE TO RELATIONS
A GROWING ENEMY THAT WE ALL HAVE --
U. S. POLICYMAKERS US AS
INDUSTRY LEADERS WE REALLY HAVE
TO WORK TOGETHER TO BUILD A
VIBRANT ENERGY FUTURE FOR
EVERYONE IN THE STATE.
AND THAT MEANS SAFE SUSTAINABLE
AFFORDABLE ENERGY THAT'S
AVAILABLE TO AS MANY PEOPLE AS
POSSIBLE IN ELECTRICITY NATURAL
GAS AND TRANSPORTATION FEELS SO
ALL THREE OF THOSE ARE REALLY
IMPORTANT --
WERE WORKING ON A GOOD
COMPREHENSIVE ENERGY PLAN I
THINK WE'RE MAKING SOME STRIDES
BUT WE'RE NOT THERE YET AND THIS
KIND OF CONVERSATION IS REALLY
IMPORTANT BECAUSE THE LINKAGES
BETWEEN ALL OF THOSE.
AS YOU HEARD IN THE PREVIOUS AYE
DISCUSSION IS REALLY REALLY
IMPORTANT SO.
I THINK FOCUSING A LITTLE BIT ON
A COMPREHENSIVE ENERGY PLAN FOR
THE STATE GOING FORWARD WILL BE
ANOTHER REALLY GOOD THING FOR US
TO DO.
I AM ETERNALLY BUT NOW TO THE
HEAVIEST LEGAL OKKERVIL STANDARD
THE SUBJECT OF THIS.
AND LAST YEAR YOU ALL KNOW S. B.
THREE NINETY EIGHT EXTENT CAP
AND TRADE WITH SOME PRETTY
AGGRESSIVE GOALS.
BUT THEY HAD A VERY KEEN FOCUS
YOU ALL HAD A KEEN FOCUS AND WE
CERTAINLY SUPPORT THAT EXTENSION
ON COST CONTAINMENT.
AND I BRING THAT UP BECAUSE
WE'VE DONE ALL THE EASY THINGS
EVERYTHING ELSE WE DO NOW IS
REALLY EXPENSIVE IN WHATEVER
PROGRAM WE'RE TALKING ABOUT AND
SPECIFICALLY IN THIS.
ONE AND WE HAVE TO MAKE SURE
THAT THE BUSINESSES CAN STILL
OPERATE AND THE CONSUMERS.
WHO ARE --
THE YOU KNOW REALLY GETTING
IMPACTED FROM ALL THESE POLICIES
ON CAN SUPPORT THIS GOING
FORWARD IF WE REALLY WANT TO
HAVE A SUSTAINABLE PROGRAM.
SO IF THERE'S ANYTHING I WANT TO
TAKE AWAY FROM THIS BECAUSE
DISCUSSION ITS TO REALLY KEEP A
KEEN EYE ON COST CONTAINMENT
LIKE YOU DID IN CAP AND TRADE.
BECAUSE WE THINK IT'S IT'S
INSUFFICIENT IN THIS PROGRAM TO
ACTUALLY SUSTAIN IT GOING
FORWARD.
WE REMAIN PRETTY CONCERNED ABOUT --
ABOUT THE VIABILITY OF THE FUEL
SUPPLIES THAT AVAILABLE TO ALL
CONSUMERS AND WE SAY THAT IT'S
EVERY REGION.
AND IT'S EVERY SOCIAL ECONOMIC
STATUS THROUGHOUT THE STATE.
ALL OF THAT IS IS REALLY
IMPORTANT.
YOU ON ALL THIS IS ONE OF THREE
OF THE POLICIES IN THE STATE OF
CALIFORNIA THAT DEALS IN IN --
CLIMATE CHANGE EMISSIONS AS
REFINERS WERE CERTAINLY LARGE
STATIONARY SOURCES.
SORE SUBJECT CAP AND TRADE --
WERE SUBJECT TO TRANSPORTATION
FUELS UNDER CAP AND TRADE
WHETHER WE MAKE IT HERE WE
IMPORT AND AND SO NOW YOU HAVE
ON TOP THAT OF COURSE THE LOW
CARBON FUEL STANDARD.
I PROGRAM AT THINK THEY'LL LEO
DID A GREAT JOB IN TRYING.
TO SIMPLIFY AS MUCH AS POSSIBLE
WHICH IS A REALLY COMPLEX
PROGRAM MOST PEOPLE DON'T EVEN
KNOW WHAT LCS F. S. MEANS AND SO
I REALLY APPRECIATE THAT THAT
PREVIOUS CONVERSATION --
BUT THIS IS A LIFE CYCLE
EMISSIONS PROGRAM RATED INCLUDES
ELECTRICITY IN THE REFINING
PROCESS IT IT INCLUDES --
IRRIGATION FROM BIOFUELS
INCLUDES FERTILZERS --
AND SO IT'S NOT A TAILPIPE
EMISSION PROGRAM RIGHT WE'VE
DONE A LOT THERE WITH THEIR BE
WE'VE HAD WHAT THREE QUICKLY TO
BRING GASOLINE PROGRAMS.
PATROLS OVER DIESEL.
AND THE STATE OF CALIFORNIA
REQUIRES US TO MAKE THE CLEANEST
BURNING GASOLINE AND DIESEL ON
THE ON THE FACE OF THE EARTH SO.
IT IS REALLY FOCUSED ON THIS ON
THE CARBON INTENSITY AND IT WAS
A DISCRETE EARLY ACTION OF YOU
KNOWS ADOPTION TOOK TWO THOUSAND
NINE BUT IT'S BEEN AFFECT FOR
TEN YEARS.
RIGHT THE COMPLIANCE CURVE AS WE
HEARD WAS BACK END LOADED THAT
MEANS THAT PERCENTAGE IS PUSHED
OUT IN THE OUT YEARS AND THAT'S
FOR VERY GOOD REASON IT'S
BECAUSE THEY'RE LETTING.
LOSI AYE FUELS AND TECHNOLOGY
ADVANCE PROGRAM.
BUT WORD ABOUT THREE POINT 5%.
TODAY RIGHT THAT'S THE
REQUIREMENT AND LIVE A LONG WAY
TO GO TO EVEN GET TO THE
ORIGINAL 10% BUT TWENTY TWENTY
AND NOW OF COURSE THE RB IS
LOOKING AT EXTENDING THAT 218%
OUT -- TO
TWENTY THIRTY YOU KNOW FOR THE
MOST PART IN THE EARLY STAGES OF
THIS WE MEET THAT BY BLENDING
LOWER SEE AYE ETHANOL BIODIESEL
AND RENEWABLE DIESEL.
BUT THAT'S AT THIS LOW LEVEL
THREE POINT 5% [inaudible]
SO.
I WOULD SAY THAT YOU FOR BE SAID
BEFORE IN THE IN LIGHT OF ALL OF
THESE PROGRAMS WE ALL KNOW YOUR
CONSTITUENTS THE PEOPLE THE
COMMUNITIES WE SERVE WAKE UP
TOMORROW.
CAN EXPECT THREE THINGS FROM ALL
OF US.
YOU KNOW THEY EXPECT TO TURN THE
LIGHTS ON HIDDEN COOLER HOMES
AND DRIVE FOR ME TO BE
AFFORDABLE.
AND SO AS WE LOOK AT THIS IN THE
COMPREHENSIVE SENSE OF ALL THESE
PROGRAMS.
YET.
IT'S ITS NOT HOW WE'RE GOING TO
BE IN THIS CONGRESS IS THAT IF
WE'RE GONNA BE THE COMPETITIONS
REALLY HOWARD AND IN THAT
CONVERSATION.
I'M SO PLEASED TO TWENTY
THIRTEEN TARGETS A PRETTY
DAUNTING RIGHT THE GO 18% OUT TO
THE FUTURE.
AND I DON'T WANNA BE A BROKEN
RECORD BUT AGAIN COST
CONTAINMENT IF YOU TAKE ANYTHING
AWAY FROM THIS PROGRAM AT THIS A
DISCUSSION.
PLEASE FOCUSED ON COST
CONTAINMENT FOR THIS PROGRAM
LIKE YOU'VE DONE AND LOW CARBON
FUEL STANDARD.
RIGHT NOW I THINK YOU HEARD THE
ILIO SAY THAT CREDIT PRICE FOR
LOOK COVERAGE FEEL SAD ABOUT A
HUNDRED FORTY NINE HUNDRED FIFTY
DOLLARS --
PER METRIC TON.
AS COMPARED CAP AND TRADE
FIFTEEN DOLLARS PER METRIC TON.
SO YOU'RE BEGINNING TO SEE THE
COST OF THIS PROGRAM IS FAIRLY
EXTENSIVE THAT'S A 90% INCREASE.
IN AVERAGE CREDIT PRICE IN JUST
A YEAR AGO.
SO THAT'S THAT'S SOMETHING TO DO
REAL YOU TAKE.
TAKE A WE'RE TAKING NOTE OF IT --
AND I KNOW THERE'S BEEN A LITTLE
BIT OF CONCERN OVER THE PAST GAS
TAX OF TWELVE CENTS A GALLON FOR
GASOLINE TWENTY CENTS FOR DIESEL.
BUT WHEN YOU LOOK AT THAT IN
ADDITION TO LOW CARBON FEEL
STAND AND WE I JUST LOOK AT THE
SUBMIT THIS MORNING ON OPUS AND
CHECK WITH THE ENERGY COMMISSION.
FOR LOW CARBON FUEL STANDARD
GASOLINE IS ANOTHER TWELVE POINT
THREE CENTS A GALLON DIESEL
EIGHT POINT FOUR CENTS A GALLON.
OKAY THAT'S ON TOP OF A GAS TAX
NOW CAP AND TRADE.
ANOTHER ELEVEN NINE CENTS PER
GALLON FOR GASOLINE AND FOURTEEN
CENTS PER POUND FOR DIESEL.
SO YOU START STACKING UP THESE
PROGRAMS.
THAT'S WHY I SAY FOR
SUSTAINABILITY.
THE BUSINESSES HAVE TO BE ABLE
TO OPERATE.
WHO USE ALL OF THE FUELS AND
THAT CONSUMERS HAVE TO BE ABLE
TO SUPPORT A PROGRAM?
BECAUSE IT'S COST EFFECTIVE AND
SUSTAINABLE USE START STACKING
UP THOSE COSTS IT BECOMES PRETTY
CONCERNING FOR NOT ONLY
BUSINESSES BUT FOR CONSUMERS SO
AGAIN.
COST CONTAINMENT COST
CONTAINMENT.
WHEN WE LOOK AT STAFF --
AIR BE STAFF ASSESSMENT FOR THE
PROPOSED AMENDMENTS THAT ARE ARE
BEFORE US --
THIS YEAR THE INCREASED COST OF
COMPLIANCE BETWEEN TWENTY
NINETEEN AND TWENTY THIRTY IS IN
EXCESS OF EIGHT BILLION DOLLARS.
THAT'S THE COST OF COMPLIANCE IN
THE OUT YEARS OF THE PROGRAM.
THE SAME STAFF ASSESSMENT.
AND THAT SHOULD CONCERN US
EQUALLY AS MUCH SHOWS THAT TWO
THIRDS OF THAT COST OF
COMPLIANCE.
FLOWS OUT OF THE STATE
BUSINESSES OUT OF STATE
BUSINESSES.
SO SOME IS BENEFITING FROM IT
BUT IT'S DIFFERENT NOT
NECESSARILY --
PEOPLE IN CALIFORNIA
[inaudible]
SO -- IT
INCREASES COSTS THE CONSUMER.
GENERATES BILLIONS OF DOLLARS
BUT EXPORTS THE BULK OF THAT.
OUT OF THE STATE.
SO I LOOK AT ALL OF THEM I KNOW
ONE THING THERE'S DEFINITELY
ROOM FOR IMPROVEMENT IN THIS
PROGRAM [inaudible]
OKAY.
I'M NOW IT CERTAINLY CAN BE YOU
KNOW THINGS CAN BE DONE TO
CORRECT IT --
WE ARE VERY MUCH INVOLVED IN TWO
OF THOSE THAT ARE --
BEING TALKED ABOUT AS WE SPEAK
WHICH WERE SUPPORTIVE OF AND
THAT IS THE REFINERY INVESTMENT
CREDIT.
AND CARBON CAPTURE SEQUESTRATION.
WE ACTUALLY ABSOLUTELY BELIEVE
YOU CANNOT MEET THESE GOALS
WITHOUT CCS.
THAT IS TAKING CARBON OUT THE
ATMOSPHERE AND STARTING ON ROUTE
SO THOSE ARE TWO AREAS THAT CAN
HELP.
ON COST CONTAINMENT BUT THERE
HAS TO BE MORE FOCUSED ON THIS
PROGRAM AND PASS.
SO IN CONCLUSION I WANT TO GIVE
OBVIOUSLY.
THE REST OF MY THE PANEL MEMBERS
THAT THERE DO TIME --
WE THINK THAT YOU OBVIOUSLY AND
US AND EVERYONE IN THIS
CONVERSATION REALLY DOES WANT.
A SUSTAINABLE ENERGY FUTURE BUT
IT HAS TO BE A BALANCE BETWEEN
ENVIRONMENT.
ECONOMY AND SOCIAL PROGRESS
RIGHT ALL THREE OF THOSE ARE
VERY VERY VERY IMPORTANT FOR
THIS TO WORK SO WE DON'T HAVE TO
MAKE A CHOICE BETWEEN.
YOU KNOW WHETHER WE YOU KNOW
WHAT TO PROTECT THE PLANET
PROTECT PROSPERITY OR PROTECT
THE COMMUNITIES WE SERVE RIGHT
WE CAN DO ALL OF THOSE THINGS IF
WE DO THIS RIGHT AND REALLY
FOCUS ON THESE PROGRAMS AND WHAT
IT COST.
AND HOW THEY LINKED TOGETHER SO --
I THINK WELL BELIEVE WE DON'T
HAVE TO SACRIFICE ONE AND AGAIN
I JUST WANTED TO THANK THIS HUGE
MISTER CHAIRMAN AND THIS PANEL
IN THIS SELECT COMMITTEE. FOR
REALLY TAKING THIS ISSUE UP AND
TAKING IT TO HEART BECAUSE THIS
IS THESE ARE PORT MATTERS.
AND COST TO BUSINESSES AND
CONSUMERS ARE VERY IMPORTANT AS
CALIFORNIA.
REACHES ITS VERY AGGRESSIVE
TARGETS [inaudible]
THANK YOU.
THANK YOU APPRECIATE THAT AND
THE OTHER BE A NUMBER OF
QUESTIONS.
THEY SUFFER JUST MONEY WAS GOING
AND MOVE ON TO OUR NEXT PANELIST
WHO WOULD LIKE.
TO GOOD AFTERNOON CHAIRMAN SAUCE
AND MEMBERS MY NAME IS NINA
COMPORT AND THE DIRECTOR OF
STATE GOVERNMENT AFFAIRS FOR THE
COALITION FOR RENEWABLE NATURAL
GAS.
THE COALITION FOR NEW OF OUR
NATURAL GAS IS A FIVE A ONCE HE
SIX TRADE ASSOCIATION
REPRESENTING AND PROVIDING THE
RENEWABLE NATURAL GAS INDUSTRY
WITH THE PUBLIC POLICY PLATFORM
ADVOCACY BOYS.
I NOT ONLY IN CALIFORNIA BUT
ACROSS THE UNITED STATES AND
CANADA OUR MEMBERSHIP IS
COMPRISED OF MORE THAN A HUNDRED
AND THIRTY LEADING COMPANIES.
MANY OF WHOM ARE BASED IN OUR
OPERATE IN CALIFORNIA I'M
INCLUDING BUT NOT LIMITED TO
PRODUCERS OF GREATER THAN 90%.
OF ALL THE ARE IN G.
PARTICIPATING IN THE AISLE CFS
TODAY WE BELIEVE THAT REDEEMING
REFUSE THE WASTE THAT SOCIETY
PRODUCES FOR PRODUCTIVE AND USES.
IS THE EPITOME OF SUSTAINABILITY.
RENEWABLE NATURAL GAS ALSO KNOWN
AS ARE IN G. OR BIO METHANE IS A
PRODUCT GAS DRIVE FROM THE BIO
GAS OR RAW METHANE.
THAT'S EMITTED FROM ORGANIC
MATERIALS NATURALLY DECOMPOSING
IN RENEWABLE WASTE STREAMS.
TODAY OUR ENERGY PRODUCTION
FACILITIES ARE DEVELOPED TO
CAPTURE AND CONVERT THAT BIOGAS
AT LANDFILLS WASTE WATER
TREATMENT FACILITIES.
AND DARIUS AND OTHER LIVESTOCK
OPERATIONS IN A WAY THAT ENABLES
IT TO BECOME INTERCHANGEABLE
WITH GEOLOGIC NATURAL GAS.
CLEANING CONDITION BY A GAS IS
KNOWN AS RENEWABLE NATURAL GAS
OR BY AND NOTHING WHICH IS THEN
COMPATIBLE WITH CNG ANALOGY
VEHICLES.
AND CAN BE INJECTED INTO AND
TRANSPORTED VIA NATURAL GAS
COMMON CARRIER PIPELINES FOR A
VARIETY OF AND USES.
INCLUDING AS AN ULTRA LOW AND
EVEN [inaudible]
TEACHING YOUR THE ALTERNATIVE TO
CAPTURING AND CONVERTING METHANE
FROM THE SOURCES IS FLARING GAS.
WHICH COMBUSTS AND WASTE THIS
VALUABLE ENERGY RICH RESOURCE
EVEN WORSE THAN FLARING IF
NOTHING IS COLLECT AT IS NOT
COLLECTED THE GAS WILL ESCAPE
FUGITIVE LEAD INTO THE
ATMOSPHERE WHERE IT IS EIGHTY
FOUR TIMES AS POTENT AS CARBON.
AS CARBON DIOXIDE AS A
GREENHOUSE GAS --
I'D ENCOURAGE MEMBERS OF THIS
COMMITTEE TO REVIEW THE LCS
DIASPORA ON THAT DESPERATE ON
THE CURB WEBSITE --
IT HAS DATA ON VARIOUS RENEWABLE
FUELS RENEWABLE NATURAL GAS IS
BY FAR THE LOWEST CARBON FUEL
AVAILABLE. TO GIVE YOU SOME
RIVER YOU'LL FIND THERE AS A
BASELINE DIESEL HAS A CARBON
INTENSITY LEVEL OF ABOUT A
HUNDRED GRAMS FOR MAYBE TWO OF
ENERGY.
GASOLINE IS AROUND.
NINETY ELECTRICITY IN CALIFORNIA
WHEN USES VEHICLE FUEL IS ABOUT.
THIRTY FIVE THAT'S PRETTY
IMPRESSIVE THAT'S ALMOST A TWO
THIRDS REDUCTION IN CARBON
DENSITY COMPARED TO GASOLINE.
HOWEVER RENEWABLE NATURAL GAS
GOES AS LOW AS NEGATIVE TWO
HUNDRED AND FIFTY FIVE CERTIFIED.
WITH OTHER EVENLOWER CARB
INTENSELY SCORES FOR IN THE IN
THE CERTIFICATION PROCESS.
THAT'S MORE THAN 210050%
REDUCTION WHEN COMPARED TO
DIESEL.
DRIVING IN NATURAL GAS VEHICLE
POWERED BY RENEWABLE NATURAL GAS
ACTUALLY HELPS THE ATMOSPHERE AS
IT DRIES.
THIS IS A LOW CARBON DUAL
STANDARDS OF COURSE CARBON IS
THE METRIC ON WHICH THERE'S THE
MOST FOCUS IN THIS DISCUSSION.
BUT I KNOW THIS BUILDING PEOPLE
ARE ALSO VERY CONCERNED ABOUT
KNOX.
I WILL ADD HERE THAT A RECENT
STUDY FROM THE UNIVERSITY OF
CALIFORNIA RIVERSIDE FOUND THAT
VEHICLES FUELED BY OUR ANGIE
KNOWN AS NEAR ZERO EMISSION
VEHICLES.
OUR NINETY NINE POINT 8% CLEAN
IN REGARDS KNOCKS EMISSIONS.
THE TRANSLATION IS THAT THERE'S
NO MEASURABLE ADDITIONAL IMPACT
IN THE METRICS OF PUBLIC HEALTH.
THAT THIS LEGISLATURE CARES
ABOUT AS MY RESPIRATORY DISEASE
AND PREMATURE DEATH WHEN
COMPARED TO A NEAR.
WHEN COMPARED TO IS YOUR MISSION
VEHICLE THIS IS IMPORTANT
BECAUSE THE NEAR ZERO EMISSION
VEHICLE CAN BE SIGNIFICANTLY
LOWER IN COST THAN A ZERO
EMISSION VEHICLE?
MEAN THAT PUBLIC AND PRIVATE
PLEADS CAN AFFORD MORE CLEAN
VEHICLES FOR THE SAME BUDGET.
OUR ENERGY PRODUCTION FACILITIES
ALSO PRODUCE ADDITIONAL CO
BENEFITS BY MITIGATING SOIL AND
WATER IMPACTS OF THE SOURCE
FACILITIES. FOR EXAMPLE
POLLUTION BENEFITS FROM.
HAS BEEN SHOWN.
TO SIGNIFICANTLY DECREASE
EMISSIONS OF SOCKS HYDROGEN
SULFIDE AND MONIA AND VOLATILE
ORGANIC COMPOUNDS.
EACH ORANGEY PROJECT ATTRACTS
BETWEEN TEN AND SEVENTY MILLION
DOLLARS OF INVESTMENT DEPENDING
ON THE FEEDSTOCK.
EACH ARE IN G. PROJECT CREATES
UP TO A HUNDRED AND SEVENTY
THREE DIRECT AND INDIRECT JOBS.
WITH ANY SIGNIFICANT INVESTMENT
SPURRED BY THE STATE INCLUDING
AS PROPOSED UNDER LEGISLATION
BEING CONSIDERED THIS YEAR WE
BELIEVE INDUSTRY CAN DEVELOP UP
TO THREE HUNDRED NEW AREN'T YOU
PREDICT PRODUCTION FACILITIES
AND STATE.
UNFORTUNATELY DUE TO NINETEEN
EIGHTY EIGHT LEGISLATION AND
REGULATION THAT HADN'T BEEN
ADDRESSED IN SALT TWENTY ELEVEN
THE ORANGEY INDUSTRY IS FORCED
TO INVEST IN AND BUILD PROJECTS
OUTSIDE OF CALIFORNIA.
CALIFORNIANS ARE PS PROGRAM AND
SIMILAR PROGRAMS IN THIRTY SEVEN
OTHER STATES WERE RESPONSIBLE
FOR DRIVING THE DEVELOPMENT AND
PRODUCTION OF OUR ENERGY UNTIL.
TWENTY TWELVE WHEN THE VALUE OF
OUR ENERGY PRODUCED OUT OF STATE
WAS REDUCED UNDER THE CALIFORNIA
OUR PS.
THERE ARE ONLY A HANDFUL OF RG
PRODUCTION FACILITIES OPERATING
IN STATE TODAY.
DUE TO RECENT CHANGES IN
PIPELINE INDUCTION STANDARDS AND
MORE INCENTIVE DOLLARS COMING
DOWN OUR MEMBERS ARE INVESTING
HUNDREDS OF MILLIONS OF DOLLARS
TODAY IN PROJECTS IN STATE.
BUT UNTIL ADDITIONAL INCENTIVES
FOR IN STATE PROJECTS THROUGH
THE ADOPTION OF NATURAL GAS
VEHICLES --
REASONABLE PIPELINE INJECTIONS
STANDARDS AND ADDITIONAL MARKET
CERTAINTY UNFORTUNATELY
CALIFORNIA WILL PROBABLY
CONTINUE TO IMPART MOST OF THE
AREN'T YOU CAN SEE ON THIS.
RENEWABLE NATURAL GAS PLEASE
SIGNIFICANT AND INCREASING ROMEO
CFS CREDIT GENERATION BETWEEN --
BIO CNG IN BIO LNG TOTALED
600-800-00800 AND ONE CREDITS IN.
TWENTY SEVENTEEN AS A RESULT
THIS IS A LITTLE KNOWN FACT THAT
APPROXIMATELY 61% OF NATURAL GAS%
USES TRANSPORTATION FUELS TODAY
IN CALIFORNIA IS ACTUALLY
ALREADY RENEWABLE NATURAL GAS.
THIS IS EXPECTED TO REACH 90%
WHEN THE LOS ANGELES
METROPOLITAN TRANSPORTATION
AUTHORITY CONVERTS ITS BUS FLEET
TO OUR ENERGY WITHIN THE NEXT
YEAR.
THE FEDERAL OUR FS AND
CALIFORNIA'S OUTFITS LCF US AND
THEIR ASSOCIATED MARKETS.
HAVE HAD SIGNIFICANT IMPACT ON
IT OUR ENERGY INDUSTRY GROWTH
PROJECT DEVELOPMENT AND
PRODUCTION VOLUMES.
WHAT WAS AN INDUSTRY WITH ONLY
TWO TO THREE DOZEN PROJECTS IN
NORTH AMERICA PRIOR TO THE
IMPACT OF THE OCF ASSN ARAFAT'S?
THESE PROGRAMS HAVE LED TO THE
NINE NUMBER OF OUR ENERGY
PRODUCTION FACILITIES MORE THAN
DOUBLING.
AND JUST A FEW YEARS WHILE
TRIPLING THE VOLUME OF INDUSTRY
PRODUCTION.
WE'VE APPRECIATED THE
OPPORTUNITY TO WORK WITH THE AIR
RESOURCES BOARD STAFF ON THE
PROPOSED TWENTY EIGHTEEN
AMENDMENTS A LOW CARBON FUEL
STANDARDS.
WERE VERY SUPPORTIVE OF THE
EXPANSION OF THE PROGRAM JUNE
18% REDUCTION IN CARBON
INTENSITY RED TWENTY THIRTY WE
ALSO SUPPORT THE INCLUSION OF A
THIRD PARTY VERIFICATION SYSTEM
THAT WILL ENSURE THE OVERALL
INTEGRITY OF THE PROGRAM. ONE
PRINCIPLE THAT WE HOPE CARP
RETAINS AS THE TECHNOLOGY
NEUTRALITY OF THE PROGRAM THIS
IS A PROGRAM THAT WAS MEANT TO
TREAT ALL FEELS EQUALLY.
INCENTIVIZING ONLY ON THE BASIS
OF THEIR CERTIFIED CARBON
INTENSITY.
IF I CAN LEAVE YOU WITH ONE
MESSAGE TODAY IT'S THAT
CALIFORNIA'S LOW CARBON FUEL
STANDARD IS WORKING WELL.
BETWEEN TWENTY ELEVEN AND TWENTY
SIXTEEN YA CFS IS HOW TO
GENERATE ONE POINT SIX BILLION
DOLLARS INVESTMENT CALIFORNIA.
TWO BILLION DOLLARS IN AVOIDED
HEALTH IMPACTS TWENTY SIX
MILLION TONS OF AVOIDED CARBON
POLLUTION AND A 57% INCREASE IN
THE USE OF CLEAN FUELS.
THIS PROGRAM IS WELL WORTH THE
INVESTMENT AND WE LOOK FORWARD
TO WORKING WITH CARVE AND THE
LEGISLATURE TO ENSURE A
SUCCESSFUL SECOND PHASE.
I THINK YOU FOR YOUR TIME AND
ATTENTION AND I'M HAPPY TO
ANSWER ANY QUESTIONS YOU MIGHT
HAVE.
THANK YOU APPRECIATE THAT WILL
CONTINUE WITH TESTIMONIES AND
WE'LL GO TO QUESTIONS PLEASE IF
YOU.
A GOOD AFTERNOON CHAIRMAN SALAS
AND MEMBERS OF THE SELECT
COMMITTEE ON CALIFORNIA'S ENERGY
FUTURE.
MY NAME IS NEIL CURLER I AM THE
PRESIDENT AND CEO OF PACIFIC
CAPITAL.
CALIFORNIA'S LARGEST PRODUCER OF
LOW CARBON ETHANOL.
WE OPERATE TO ETHANOL PLANTS IN
CALIFORNIA AND MARKET THE
MAJORITY OF THE ETHANOL PRODUCED
IN THE STATE ONE OF THOSE PLANTS
AND ASSEMBLY.
MEMBER MATHIS IS DISTRICT IN AND
PICKS THE CALIFORNIA.
SO WERE THE FOR ETHANOL PLANTS --
MAIN ETHANOL PLANTS --
IN IN CALIFORNIA.
OF PRODUCE ABOUT [inaudible]
TWO HUNDRED TWENTY CITY AND TO
AN EARLIER QUESTION IN TERMS OF
IN STATE SUPPLY.
FROM THE THE ETHANOL WHICH HAS
GENERATED SIGNIFICANT CREDIT IN
THE PROGRAM A WE'RE PROVIDING IN
STATE PRODUCTION OF ABOUT 15%.
ALL THE REST IS IMPORTED
PRINCIPALLY FROM THE MIDWEST A
BUT THERE'S NO OPPORTUNITY TO DO
MORE HERE IN THE STATE.
I'M OUR ETHANOL'S AMONG THE
LOWEST CARBON SCORED ETHANOL IN
THE THE ENTIRE MARKET --
WHO WE AS A COMPANY AND IS A
CALIFORNIA ETHANOL INDUSTRY HAVE
BEEN CONSISTENT A LONG STANDING?
SUPPORTERS OF LOW CARBON FUEL
STANDARD WE WERE STANDING BY THE
SIDE OF THAN ARNOLD GOVERNOR
ARNOLD SCHWARZENEGGER IN. TWO
THOUSAND AND SEVEN WHEN HE
INITIATED THIS PROCESS A THROUGH
HIS EXECUTIVE ORDER.
I SINCE THAT TIME WE'VE BEEN
WORKING VERY ACTIVELY WITH THE
COALITION OF LOW CARBON.
A FUEL SUPPLIERS LABOR AND
ENVIRONMENTAL GROUPS IN IN
SUPPORTING A VIABLE LCF THAT'S
SO VERY A BROAD BASED COALITION
THAT I THINK IT'S BEEN YOU KNOW
A KEY TO THE SUSTAINABILITY IN
THE SUCCESS OF THE PROGRAM.
AND AND TO THAT POINT OF THE LC
OFFICE IS WORKING.
TODAY THE LCI PASSES HELPED THE
STATE AVOID ABOUT THIRTY THREE
MILLION METRIC TONS OF CARBON
EMISSIONS.
ROUGHLY EQUIVALENT TO TAKING
MORE THAN SEVEN MILLION CARS OFF
THE ROAD FOR A YEAR.
IT IS DELIVERING.
CLEAN AIR GOOD JOBS AND CLEAN
FUEL CHOICES TO ALL CALIFORNIANS.
WE CAN HAVE CLEAN FUELS AND GROW
OUR ECONOMY I THINK HE'LL CFS IS
A GREAT EXAMPLE OF THAT.
I IN ETHANOL IS PART OF THE
SUCCESSFUL LC OF ITS PROGRAM.
HAS PLAYED A VERY SIGNIFICANT
ROLE.
NEARLY HALF OF ALL THE L. CFS
CREDITS. TO DATE HAVE COME FROM
DOMESTICALLY PRODUCED ETHANOL.
AND IF WE LOOK LOOK JUST TAKE
CREDITS FROM THE GASOLINE POOL
THERE'S A GAS AND PULL THE DE
SUPPORT.
OUR ETHANOL IS RESPONSIBLE FOR
WELL OVER 80% OF THE CREDITS
GENERATED SO REAL WORKHORSE OF
THE PROGRAM.
I IN ITS TIME IS GONE ON WE SEEN
DIVERSIFICATION AND RENEWABLE
NATURAL GAS MORE RENEWABLE
DIESEL BIODIESEL ELECTRICITY SO
THAT'S BEEN A REAL SUCCESS OF
THE PROGRAM IS THAT WHILE.
YOU ETHANOL IN THE EARLY YEARS
IS VIRTUALLY ALL THE CREDIT
WE'RE NOW SEEING A
DIVERSIFICATION INTO OTHER FUEL
SOURCES AND AND WE WE A PLOT
THAT NOT JUST.
ONE ACCEPTABLE OUTCOMES OF THE
PROGRAM.
IF YOU LOOK AT ALL BIOFUELS
INCLUDING --
ETHANOL BIODIESEL RENEWABLE
DIESEL AND ROOM WITH NATURAL GAS.
ALL OF THOSE TOGETHER VIA FEELS
A CONTRIBUTED OVER 90% OF ALL
THE L. CFS CREDITS PROGRAM TODAY.
AND SINCE UP IN ALL CELLS
CONSISTENTLY AT A DISCOUNT THE
WHOLESALE GASOLINE WE ARE
HELPING TO LOWER THE PRICE OF
GASOLINE AT THE PUMP.
I'M I I AGREE IF KATHY WHEN HE
COST CONTAINMENT I AND I THINK
ETHANOL IS IS ACTUALLY OF A VERY
IMPORTANT CONSIDERATION IN IN
ETHANOL'S PARTICIPATION.
IS THAT WE ARE NOT ONLY TO
INCREMENTAL FUEL SUPPLY LOW
CARBON HIGH OCTANE FUEL BUT WE
SELL CONSISTENTLY AT A OF FAIRLY --
MARKET DISCOUNT TO GASOLINE ARE
ANYWHERE FROM FIFTY TO SEVENTY
CENTS A GALLON LESS THAN THE
PRICE OF WHOLESALE GASOLINE SO
WE'RE DELIVERING ALL OF THESE
WONDERFUL ECONOMIC AND
ENVIRONMENTAL BENEFITS AS A FUEL.
ON BUT AT THE PUMP WERE ALSO
LOWERING THE COST SO IF YOU LOOK
AT SOME OF THE NUMBERS ON TODAY
LCF ASSN THE GASOLINE POOL.
NO CAUSTIC SUMER MAYBE FIVE
CENTS A GALLON NO SIX SIX OR
SEVEN HUNDRED MILLION DOLLARS IN
IN THE LAST YEAR WE'RE ACTUALLY.
IN THE COMMODITY PRICE FOR
ETHANOL --
SAVING CLOSER TO A BILLION
[inaudible]
BUSH DOT.
THE COSTS OF COMPLIANCE BUT
LET'S LOOK AT THE FUELS AND HOW
THAT INCREMENTAL SUPPLY IS
ACTUALLY --
LOWERING THE COST TO CONSUMERS
AT THE PUMP WHILE PROVIDING
CHOICE.
THE LCF* CREATED THE
INCENTIVES NECESSARY TO DRIVE
INNOVATION AND INVESTMENT IS
RESULTED IN REDUCED GREENHOUSE
GAS EMISSIONS FROM ETHANOL
PRODUCTION.
CARP HAS CERTIFIED CARBON
INTENSITIES FOR SOME PRODUCERS
THAT ARE 4250% BELOW THE CARBON
INTENSIVE GASOLINE AND THE MOST
RECENT QUARTERLY DATA SHOWED.
THE AVERAGE ETHANOL SEE AYE
CARBON INDEX.
IN THE FOURTH QUARTER WAS 31%
BELOW GASOLINE AND FALLING.
IN FACT IT IS A MEASURE OF
SUCCESS OF THE LCF ES AT SINCE
THE INCEPTION OF THE PROGRAM.
THE AVERAGE CARBON INTENSITY
ABOUT THEM ALL HAS BEEN REDUCED
BY NEARLY 25% AND CONTINUES.
TO CONTINUES TO FALL SO AGAIN
THE PROGRAM HAS PROVIDE
INCENTIVES OUGHT TO NOT ONLY
BRING ON THE LOWER CARBON
INTENSIVE FUELS BUT TO PROVIDE.
INCENTIVES TO MAKE INVESTMENTS
TO FURTHER REDUCE THAT.
S. CARD NOW CONSIDERS ADOPTION
OF THE MORE AMBITIOUS LCF
TARGETS OUT TWENTY THIRTY WE
CONTINUE SUPPORT PROGRAM.
INFRACTIONS IT WILL FACILITATE
ACHIEVEMENT OF THE LONG TERM CI
REDUCTION GOALS.
THE PROGRAM --
ELECTED TO TO REALLY I SAY THAT
THE AGO CAR BUT WE THINK HAS
DONE A VERY GOOD JOB CARP STAFF
HAS WORKED TIRELESSLY AND VERY
PROFESSIONALLY ON COMING UP WITH
THAT WITH THE PROGRAM --
THAT THAT DOES WORK IS
UNDERSTANDABLE THEY'RE VERY
APPROACHABLE ON IN THIS PROCESS
TO EXTEND THE PROGRAM TREMENDOUS
NUMBER OF WORKSHOPS AND
STAKEHOLDER MEETING SO.
I DEATHLY WANT TO APPLAUD THEIR
THEIR THIS PROGRAM AND AND
TAKING ON THE THE CHALLENGES OF
EXTENDING IT.
WE FULLY UNDERSTAND CARDS
COMMITMENT TO ZERO EMISSION
VEHICLES BUT IT'S CALIFORNIA
PROGRESSES IN THAT DIRECTION
ETHANOL AND OTHER BIOFUELS CAN
CONTRIBUTE TO FURTHER.
DE CARBONIZED IN THE REMAINING
USE OF LIQUID COMBUSTION FUELS.
EVEN BY CARDS OWN PROJECTIONS IN
TWENTY THIRTY THE VAST MAJORITY
OF NEW CAR SALES WILL BE POWERED
BY THE INTERNAL COMBUSTION
ENGINE.
WITH THE RIGHT POLICY SIGNALS WE
HAVE THE OPPORTUNITY TO
SIGNIFICANTLY REDUCE THE CARBON
INTENSITY OF LIQUID FUELS WHILE
PROVIDING.
ZOOMER CHOICE AT REASONABLE FUEL
COSTS.
HIGHER ETHANOL BLENDS.
LEVELS BEYOND TODAY'S NORM OF
10% COULD SIGNIFICANTLY REDUCE
GREENHOUSE GAS EMISSIONS FROM
THE LIQUID FUEL FOOL FUEL POOL
WHILE REDUCING PETROLEUM
CONSUMPTION.
AND CONSUMER PRICES. ONE
ANALYSIS SHOWS THAT EVEN A
MODEST INCREASE IN ETHANOL BLEND
LEVELS COULD PROVIDE AN
ADDITIONAL FIFTEEN TO NINETEEN
MILLION.
METRIC TONS OF GREENHOUSE GAS
REDUCTIONS BY TWENTY THIRTY AND
THAT COMPARES TO THE THIRTY
THREE MILLION METRIC TONS
PROGRAM TODAY SO WE'RE TALKING
ABOUT.
JUST WITH INCREMENTAL INCREASES
AE TO GET TO A VERY SIGNIFICANT
ADDITIONAL REDUCTIONS IN OUR
EXISTING LIQUID FUEL.
POOL.
VIRTUE ALL THE CARS ON THE ROADS
TODAY CAN RUN ON A 15% BLEND OF
ETHANOL AND IN THE FUTURE NEW
HIGHLY EFFICIENT.
INTERNAL COMBUSTION ENGINES TO
TAKE FULL ADVANTAGE OF THE HIGH
OCTANE.
LOW CARBON BENEFITS OF ETHANOL
IN 2230% PLANTS.
WE'RE IN DISCUSSIONS WITH CARD
ON HOW TO CREATE A REGULATORY
FRAMEWORK FOR OBLIGATED PARTIES
TO HAVE THE OPTION.
A PROVIDING HIGHER ETHANOL
BLENDS TO FURTHER LOWER CARBON
EMISSIONS FROM LIQUID FUELS AND
GIVING CALIFORNIA MOTORISTS MORE
FUEL CHOICES AT THE PUMP.
SINCE ITS INCEPTION THE LCF
ASPIN PROMOTED AS PERFORMANCE
BASED STANDARD THAT IS
TECHNOLOGY NEUTRAL.
PICKING UP ON THAT POINT THAT
THIS IS AT A CRITICAL POINT THAT
WE MAINTAIN THAT --
IT IS IT'S BEEN A HALLMARK OF
ITS SUCCESS AND HAS RESULTED IN
A DIVERSIFICATION A FEW OPTIONS.
IT'S CRITICAL THAT FUEL
NEUTRALITY CONTINUES TO BE
CENTRAL. TO THE LCF* AS THE
PROGRAM IS FURTHER STRENGTHENED
AND EXTENDED.
TO TWENTY THIRTY HOW CALIFORNIA
AFTER ALL INDUSTRY IS WORKING
CLOSELY WITH THE CALIFORNIA
AGRICULTURAL.
AND DAIRY INDUSTRIES TO CONVERT
AGRICULTURAL RESIDUES AND DAIRY
MANEUVER INTO THE PRODUCTION OF
THE LOWEST CARBON BIOFUELS IN
THE MARKET WE HAVE INITIATIVES
TO CONNECT BY PIPELINE BIOGAS
FROM DAIRIES DIRECTLY.
YET INTO OUR ETHANOL PLANTS
OUGHT TO BE ABLE TO DISPLACE THE
NATURAL GAS ON BOTH SOLVING A
AND METHANE ISSUE ON THE DAIRY
AND OF THE THE ETHANOL THAT WERE
PRODUCING.
ALSO WORKING TO CONVERT
AGRICULTURAL RESIDUES ON INTO --
INTO ETHANOL A AS WELL.
WITH THE RIGHT CONSISTENT AND
LONGER TERM MARKET SIGNALS ARE
CALIFORNIA INDUSTRY WILL
CONTINUE TO MAKE SUBSTANTIAL
INVESTMENTS.
IN NEW LOW CARBON ETHANOL
PRODUCTION IN THE STATE.
FROM A VARIETY OF RAW MATERIALS
PROVIDING GOOD PAYING JOBS
SIGNIFICANT ECONOMIC DEVELOPMENT
IN PARTS OF OUR STATE.
LIKE THE CENTRAL VALLEY.
VERY MUCH IN NEED OF NEW
INVESTMENT OPPORTUNITIES THANK
YOU FOR THE OPPORTUNITY TO SPEAK
TODAY [inaudible]
THANK YOU.
PLEASE GOOD AFTERNOON CHAIRMAN
SALAS AND UP MEMBERS OF THE
SELECT COMMITTEE ARM.
MY NAME IS JOKER XIN I'M THE
FOUNDER OF ENCORE BY RENEWABLES
I'VE BEEN IN THE OF BIODIESEL
INDUSTRY IN THE BAO FEELS
INDUSTRY FOR ABOUT TWENTY YEARS.
I'M ALSO A CO FOUNDER AND VICE
PRESIDENT OF THE CALIFORNIA
ADVANCED BATTLEFIELDS ALLIANCE --
I ALSO CONSULT WITH CLEAN TECH
COMPANIES AND DO BUSINESS
DEVELOPMENT AND
COMMERCIALIZATION.
I'M I'M GONNA FOCUS ON BIODIESEL
TODAY IN THE AND MY DISCUSSION
HERE -- SO
THE AUSSIE OFFENSE HAS BEEN
TREMENDOUSLY SUCCESSFUL ARE IN
SUPPORTING THE GROWTH OF BODIES
ON CALIFORNIA BOTH IN IN USAGE
AND IN A PRODUCTION.
ARE HISTORICALLY CALIFORNIA HAS
LAGGED BEHIND THE REST OF THE
WORLD OUT WHEN IT COMES TO OF
BIODIESEL.
BUT NOW IT'S ACTUALLY TAKING A
LEADERSHIP POSITION --
THE LTFS FEEL NEUTRAL POLICY
THAT OTHERS HAVE --
SPOKE ABOUT --
HAS ALLOWED BIODIESEL TO STAND
ON ITS OWN MERITS --
AND AS A RESULT IT'S REALLY%
GROWN UP DRAMATICALLY TODAY IT
GENERATES ABOUT 20% OF ALL THE
CREDITS HA IN THE SISKIN THE UP
PROGRAM AND AS NEIL.
POINTED OUT ABOUT FEELS IN
GENERAL THERE ARE OVER 90% --
ALSO LOW CARBON FEEDSTOCKS SUCH
AS USE COOKING ALL FROM
RESTAURANT UP PRODUCTION
[inaudible]
ON ARE PURSUED NOW AND
HISTORICALLY AT THE BEGINNING
THEY WERE REALLY DISCOUNTED THEY
WERE THERE WERE SEEN AS
SOMETHING.
WASTEFUL ANOTHER ACTUALLY MUCH
MORE VALUABLE WHICH IS GREAT.
A LOW CARBON FUEL STANDARD
ATTRACTS LOW CARBON BIODIESEL
FROM ALL OVER THE WORLD --
NOT JUST ALL.
BUT ALL OVER THE WORLD --
THERE'S QUITE A BIT OF
PRODUCTION IN THE STATE --
AND ALSO I WANT TO POINT OUT
FROM AN EARLIER STATEMENT WILL
LOW CARB FEEL STERN STANDARD HAS
ALSO INSPIRED SIMILAR PROGRAMS
ARE SUCH AS OREGON.
WASHINGTON CANADA AND EVEN CHINA
HOME SO THE WORLD IS REALLY
PAYING ATTENTION TO WHAT WE'RE
DOING HERE [inaudible]
ON THE PROGRAM SUPPORTED THE
GROWTH OF BIODIESEL PRODUCTION
IN CALIFORNIA --
QUITE DRAMATICALLY UP PRIMARILY --
HI THIS IS OUT MOST OF THE
PLANTS IN THE STATE ARE
PRODUCING FROM LOW CARBON
FEEDSTOCKS.
OTHER EIGHT PLANTS CURRENTLY
OPERATING MORE ARE BEING BUILT
AND MORE ARE BEING PLANNED --
EXPANSION PROJECTS TO HELP OUR
HAVE HAPPENED AT ALL PLANTS BUT
MANY ARE COMPLETED AND MANY MORE
ARE UNDER WAY.
UP PARTIALLY WITH HELP FROM THE
ALTERNATIVE AND RENEWABLE FUEL
AND VEHICLE TECHNOLOGY PROGRAM.
AND OTHER STATE AND FEDERAL
PROGRAMS ALL OF THIS DRIVEN BY
THE LOW CARB FEELS THAT --
ALL BY A FEEL PLANTS THIS HAS.
I'M FAIRLY CERTAIN ALL
BATTLEFIELD PLANTS AND STATE
HAVE BEEN BUILT AND
DISADVANTAGED COMMUNITIES.
WHICH PROVIDE GOOD PAYING GREEN
JOBS AND TRAINING THE THOUSANDS
OF CALIFORNIA WORKERS WHICH I
THINK IS [inaudible]
TREMENDOUSLY IMPORTANT.
ON THE LOW CARB FEEL STANDARD
HAS ENCOURAGED INFRASTRUCTURE
SPENDING AND BODIES PRODUCTION
AND CONSUMPTION FROM IN STATE
FACILITIES.
RESULTING REALLY IN BILLIONS OF
DOLLARS OF ECONOMIC GROWTH FOR
CALIFORNIA.
UP MORE THAN A THIRD OF ALL
CALIFORNIA BULK FUEL TERMINALS
TODAY HAVE INVESTED IN
INFRASTRUCTURE.
AND NOW SUPPORT BIODIESEL
BLENDING AND THAT NUMBER IS
GROWING --
RETAIL BLENDING TO BE TWENTY
WHICH IS A 20% BLEND OF
BIODIESEL IN WITH PETROLEUM
DIESEL HAS GROWN EXTENSIVELY TO
INCLUDE THE THREE MAJOR TRUCK
STOP RETAILERS WHICH INCLUDE
PILOT FLYING J..
TROUBLE CENTERS OF AMERICA
PETROL PLAZA AND LOOKED --
LOW CARB A FEW STANDARD IS
DRIVING TREMENDOUS GROWTH IN
BIODIESEL AND OTHER RENEWABLE
FUELS IN THIS STATE AND I THINK
THAT'S I WON A PAUSE THERE
BECAUSE IT'S REALLY IMPORTANT
DEVELOPMENT AND IT'S FAR. TOO
LARGE EXTENT.
A DUE TO LOW CARB FEEL STANDARD
AND AND ITS SUCCESS.
CALIFORNIA'S LEADING AWAY IS
LEADING THE WAY AS A RESULT --
WITH CLIMATE POLICIES ARMED WITH
CLEAN TECHNOLOGIES HOT WHICH ARE
PROVIDING BUSINESS OPPORTUNITIES
AND THE JOBS THAT COME ALONG
WITH THEM --
THIS ALL RESULTS IN HUGE
ECONOMIC BENEFITS FOR THE STATE.
FOR OUR WORKERS HERE --
THE ENERGY INDUSTRY IS ALREADY
ADJUSTING IN MAKING REAL PROFITS
AND AND THEY KNOW THIS --
I KNOW IT BECAUSE I TRADE WITH
THEM EVERY DAY THEY ARE INVESTED
IN YOU KNOW SEVERAL COMPANIES
HAVE SAID --
ENDEAVOR IS ONE EXAMPLE WHERE AN
ENERGY COMPANY WERE WERE
TECHNOLOGY NEUTRAL WERE FEET
STUCK.
TO SO THIS TRANSITION IS ALREADY
UNDER WAY ON AND I WANT ALSO --
GIVE A REMINDER THAT --
JUST LIKE ETHANOL BIODIESEL SOLD
AT A DISCOUNT TO DIESEL SO IT
HELPS LOWER THE PRICE OF DIESEL
FUEL IN MANY CASES UP TO ABOUT A
DOLLAR.
OR MORE A GALLON DISCOUNTED FROM
THE PRICE OF DIESEL FUEL --
SO I JUST WANT TO CLOSE WITH.
SAYING THE WORLD IS WATCHING YOU
KNOW REALLY WATCHING CAREFULLY
WHAT CALIFORNIA DOES.
ALSO FORTY MILLION CALIFORNIANS
ARE WATCHING.
WHAT THE STATE DOESN'T THERE'S
TREMENDOUS SUPPORT I THINK IN
THE STATE? FOR PROGRAMS ARE SUCH
AS LUKEWARM FEEL STANDARD AND
CAP AND TRADE WHICH ARE
DIFFERENT CAP AND TRADE IT TALKS
ABOUT PRODUCTION LIKE.
FACTORIES THINGS LIKE THAT LOOK
CORPORATE FEEL CENTERED STRICTLY
FOCUSES ON TRANSPORTATION FUELS
SO THAT THAT'S OF THE DIFFERENCE
I THINK THERE WAS SOME CONFUSION
EARLIER WANT TO CLARIFY THAT
[inaudible]
ARM.
YOU KNOW OUR INDUSTRY BELIEVES
THAT LOW CARBON FUEL STANDARD
SHOULD BE STRENGTHENED AND
EXTENDED TO TWENTY THIRTY AS
PART BECAUSE PROPOSED
[inaudible]
THANKS.
THANK YOU I APPRECIATE THAT IT.
JUST REAL QUICK BECAUSE YOU
TOUCHED ON IS A 20% OF THE
CREDITS OR GENERATED BY PILE
FEELS.
BIODIESEL BUT BIODIESEL OKAY AND
OILFIELDS GENERATE OVER 90%.
OVER 90% SAU MUCH.
FOR NATURAL GAS AND ETHANOL
THINK RENEWABLE NATURAL GAS IS
AROUND 10% NEED A LITTLE OVER.
AND ETHEL'S CLOSE 250%
[inaudible]
DIESEL.
RELIABLE DIESELS ABOUT 20% AS
WELL 252025% GOT IT [inaudible]
ALRIGHT.
SO APPRECIATE EVERYONE'S
TESTIMONY BUT LET ME.
ASK A SPECIFIC QUESTION SO NOW
THAT.
WE HAVE EL CFS WE HAVE OUR
TARGETS GOING TOWARDS TWENTY
TWENTY AND POSSIBLY TWENTY
THIRTY DEPENDING ON WHAT AIR
BECOMES OUT WITH --
WE'RE THE BIGGEST CHALLENGES.
AND EACH OF YOUR INDUSTRIES FACE
AS WE REACH THE LE CARBON.
INTENSITY.
AT TARGETS COMING.
WHAT WHAT'S THE BIGGEST?
THEN YOU WOULD HAVE TO PREPARE
FOR IF.
IF THOSE WERE INCREASED THOSE
TARGETS WERE INCREASES A TWENTY
THIRTY I'LL START AND END LEASE
AND THEN OBVIOUSLY OTHERS CAN
CAN WEIGH IN BUT FIRST OF ALL.
LET THIS IS A PRETTY ROSY
PICTURE THAT WAS PAINTED --
I THINK WE JUST NEED TO REMIND
OURSELVES WHY DID THE A
RESOURCES BOARD REDUCE THEIR
CARBON INTENSITY FROM 10% TWENTY
TWENTY TWO SEVEN POINT FIVE AND
TWENTY TWENTY BECAUSE THEY'RE
WORRIED ABOUT COST.
RIGHT SO AGAIN THE COST ISSUE
HERE IS REALLY IMPORTANT WHAT IS
THE DIFFERENCE BETWEEN CAP AND
TRADE IN LOW CARBON FUEL
STANDARD.
ONES ALLOT MORE COST EFFECTIVE
THAN THE OTHER.
WHY OUR BIO FUELS NOT ALLOWED TO
ACCESS CAP AND TRADE REVENUES
[inaudible]
GOOD QUESTION.
SO WHY ARE WE FOCUSING ON THE
MOST THE LEAST COST EFFECTIVE
PROGRAM RATHER THAN THE MOST
COST EFFECTIVE PROGRAM AS WE GO
FORWARD --
AND IF WE'RE GONNA STAY WITH A
LOW CARBON FUEL STANDARD AND I
THINK ONE OF THE BEST THINGS
THIS COMMITTEE COULD ASK US TO
DO IS BRING YOU BACK. TEN BIG
BOLD IDEAS ON HOW WE CAN REDUCE
COST.
AS ROSY AS THE PICTURE WAS
PAINTED.
THE DIFFERENCE BETWEEN THESE THE
PRICE OF A CREDIT FOR LOW CARBON
FUEL STANDARD IS A HUNDRED AND
FIFTY DOLLARS.
PER TON VERSES.
FIFTEEN SO WHY DO ECONOMISTS
FROM HARVARD AND BERKELEY.
SUPPORT CAP AND TRADE AND REALLY
WONDER WHAT WE'RE DOING WITH A
LOW CARBON FUEL STANDARD IT'S
DUPLICATIVE IT DEPRESSES THE
PRICE OF CAP TRADE.
IT'S UNNECESSARY NOW WE'RE NOT.
SAYING TO ABANDON LOW CARBON
FUEL CENTER THOUGH I'D LOVE TO
PROPOSE THAT.
HOWEVER SINCE CALIFORNIA SEEMS
TO BE WED TO IT LET'S AT LEAST.
TAKE THE OPPORTUNITY TO ASK
OURSELVES WHAT IS THE BEST WAY
TO APPROACH THIS PROGRAM AS WE
HAVE DONE WITH CAP AND TRADE
BECAUSE WE'RE SPENDING A LOT OF
TIME ON CAP AND TRADE.
VERY AGGRESSIVE TARGETS WHICH WE
SUPPORT BUT WITH A KEEN EYE ON
PRICE CEILING SPEED BUMPS
OFFSETS ALL OF THOSE ARE REALLY
GOOD COST CONTAINMENT MEASURES
ON A REALLY EXPENSIVE AGGRESSIVE
PROGRAM.
AND AS YOU HEARD FROM THE LA OAK.
THIS IS NOT THE MOST COST
EFFECTIVE PROGRAM.
AND THE MARKET CLEARING PRICE
MECHANISM IS NOT THE BEST
[inaudible]
SO.
THERE'S LIKE I CONTINUE TO SAY
THERE'S A LOT OF AREAS OF
IMPROVEMENT IF WERE GOING TO
HAVE ALL OF THESE VARIOUS
PROGRAMS.
MOVING TOGETHER TO MEET THESE
GOALS THAT NOW APPRECIATE THAT
AND I DO REMEMBER ASKING THE LA
OF THE QUESTION OF DUPLICATIVE
IN --
WHETHER SOME OF THESE THINGS ARE
THE MOST COST EFFECTIVE AND
THOSE ARE THE QUESTIONS THAT WE
AS LEGISLATORS WHO HAVE TO DEAL
WITH WHETHER IT'S A NEW
LEGISLATIVE PROPOSAL.
OR HAVING TO DEAL WITH THE
REGULATIONS AS THEY ARE BE COMES
OUT WITHIN --
TRYING TO UNDERSTAND --
WHAT THEY ULTIMATELY DO COME OUT
WITH THEM WORKING WITH THE
GOVERNOR'S OFFICE AS WE LOOK AT
THE POLICIES MOVING FORWARD?
WHAT IS COST EFFECTIVE WHAT DOES
IT MEAN FOR CONSUMERS AND
CALIFORNIANS AND --
I'LL LET EVERYONE ANSWER BUT YOU
KNOW I CAN LEADS TO THIS.
TO MY SECOND QUESTION WHAT DOES
WHEN WE TALKING ABOUT --
THE FLAMES TO OUT OF STATE
BUSINESSES I WANTED UNDERSTAND
OF THAT A LITTLE BIT MORE
BECAUSE EVERYONE TALKED ABOUT
THEIR IN STATE PRODUCTION.
BUT IS THE ELSEVIER LCF ES
PROGRAM GROWING IN STATE
PRODUCTION ARE AS OPPOSED TO
JUST.
BRINGING IT IN FROM OUT OF STATE
IN THAT WERE SELLING THOSE CRAP.
BUT WE COULDN'T ADDRESS FIRST
QUESTION FIRST YOU HAVE THAT ON
THERE AND THE FIRST QUESTION I I
DON'T THINK THERE IS IT.
THAT IS DUPLICATIVE TO HAVE THE
LC AT BASS AND AND CAP AND TRADE.
BUT 40% OF ALL OF OUR GREENHOUSE
GAS EMISSIONS COME FROM
TRANSPORTATION.
TOLL IS ASINGLE LARGEST --
HHG IMPACTOR I THINK IT'S VERY
APPROPRIATE TO HAVE A PROGRAM IS
VERY SPECIFIC [inaudible] TO
TRANSPORTATION --
AND THAT IS WHAT THE L. CFS IS
DOING CAP AND TRADE IS MORE
GENERAL ECONOMY WHY I ALSO WITH
ALL DUE RESPECT CATHY I DON'T
THINK IT'S ARE.
YOU COMPARE UNDER AND FIFTY
DOLLAR --
LCF ASKREDDIT TO A FIFTEEN
DOLLAR ONE IS AGAIN ECONOMY WIDE
ACROSS TOUCHING A LOT MORE
INDUSTRIES COLLECTING HOLESHOT
MORE MONEY COSTING CONSUMERS A
LOT MORE THAN WHEN YOU LOOK AT
WHAT IS THE ACTUAL PER GALLON
IMPACT.
ON ON ON THE CREDITS IN THE
HONESTLY BELIEVE THAT'S A AN
APPLE AND AN ORANGE AND BE OF
VALUE WELL WE CAN LOOK AT IT FOR
YOU KNOW.
CENTS PER GALLON IF YOU PREFER
BECAUSE THAT'S PRETTY APPLES.
TO AND A VERY VERY COMPETITIVE
IN THAT REGARD THAT'S BEFORE YOU
CONSIDER IN THE IN THE CASE OF
ETHANOL BIODIESEL.
AYE AND AND RENEWABLE MATCH GAPS
THAT MATTER THAT THESE ARE LESS
COSTLY A THEN THAT THE
PATROLLING ALTERNATIVES SO IT'S
THERE THERE'S A LOTS OF WAYS TO
LOOK AT THIS AND LOTS OF WAYS.
TO SLICE AND DICE THAT NET
NANNIES TO BE DONE TOGETHER --
A FULL LOOK AT IT IN TERMS OF
THE AND STATE THAT THERE'S NO
QUESTION AT THE THE LCMS PROGRAM.
IS ABSOLUTELY.
CRITICAL AND OF THE AND BUILDING
MORE BIOFUEL PRODUCTION IN THE
STATE OF OUR COST OF DOING
EVERYTHING ARE HIGHER THAN OUR
COMPETITORS IN THE MIDWEST.
OF THAT BECAUSE OF THAT THE
POLICIES HERE ARE BEING CLOSE TO
THIS MARKET HAVING VERY CLEAN
SOURCES OF ELECTRICITY
OPPORTUNITIES TO TO REALLY --
AKC COLLABORATE WITH THE DAIRY
INDUSTRY A TO BRING IN THE BIO
GAS YOU KNOW AND AND TO MONETIZE
THAT THROUGH --
TO CARBON.
CREDIT PRICING WHICH IS CARBON
PRICING --
WE THAT WE HAVE A REAL INCENTIVE --
TO TO TO BRING AND AND LOTS OF
NEW INVESTMENT AND GET THAT 15%
TO YOU KNOW WAS I GOVERNOR
SCHWARZENEGGER WHO HAD A 40%
GOAL.
I BELIEVE BY TWENTY FORTY OR SO
I FEEL PRODUCTION AND AND WE CAN
GET THERE BUT WE NEED LONG TERM
POLICIES THAT'S WHY WE SUPPORT.
THE EXTENSION OF THE LCF* TO
TWENTY THIRTY A WE NEED A
CERTAINTY ANTIC HOW THOSE
MARKETS ARE GOING TO PERFORM.
ARM AND ALSO IN THE CASE OF OF
ETHANOL A WE NEED ACCESS TO MORE
THE GASOLINE TANK AGAIN ACCESS
OPTIONS FOR THE REFINERS TO
BLEND MORE THAN. 10% ETHANOL SO
WE CAN FURTHER REDUCE THE COST
OF GASOLINE AS WELL AS FURTHER
REDUCE CARBON INTENSITY SUDDENLY
JUST CLARIFY SO HE SAID 15% OF
OF THE IN STATE COMES FROM
ETHANOL BUT THE ENGINES.
FOR A CAR.
RIGHT NOW THEY'RE TAKING 10%
LANGUAGE SO THEY COULD ACTUALLY
GO UP 215% THEY CAN VIRTUALLY
I'M SO THAT THE EPA HAS
CERTIFIED THAT --
THAT ALL CARS MODEL YEAR TWO
THOUSAND AND NEWER A CAN RUN ON
15% PLANS THAT IS THE VAST
MAJORITY OF THE OF THE CARS ON
THE ON THE ROAD TODAY SO YES --%
VIRTUALLY ALL THE CARS IN
CALIFORNIA CAN RUN ON A 15% PLAN
WHAT WHAT WE'RE LOOKING FOR IS
JUST A AN OPTION FOR REFINERS TO
BE ABLE TO OFFER THAT.
I THAT FUEL AYE TO THE A TO THE
CONSUMERS --
AND LET THEM LET THEM CHOOSE AND
WE AND WE FEEL THAT THAT'S A
VERY VALUABLE TOOL IN THEY ELSE
IT HAS TO BOXES TO US. TO
PROVIDE ADDITIONAL OPPORTUNITIES
TO TO WILL HAVE THE HIGHER PLANS
TO REDUCE CARBON INTENSITY.
THAT ALONE EVERYBODY ANSWER WILL
COME BACK.
TO YOU CAN FOR COALITION FOR
RENEWABLE NATURAL GAS --
DO YOU BACKING ON WHAT NEIL SAID
I THINK THE BIGGEST CHALLENGE
FROM OUR ORGANIZATIONS
PERSPECTIVE --
IS REALLY MARKET CERTAINTY SO
WHEN YOU ARE TRYING TO OBTAIN
FINANCING BASED ON A TRADABLE
CREDIT THAT HAS HUGE
FLUCTUATIONS IN PRICE --
DUE TO WHATEVER THE NEWS STORY
WAS THAT WHATEVER CAR MAY HAVE
SAID IN A WORKSHOP AND PRICES GO
UP AND DOWN AND IT'SVERY HARD
TO OBTAIN FINANCING MARKETS ARE
INDEED HUGE FOR US --
PURSUANT TO SB THIRTEEN EIGHTY
THREE THERE WAS A PROPOSAL TO
CREATE AN ALTERNATIVE FINANCING
MECHANISM THAT WOULD BE --
RUN SOMEHOW THROUGH THE STATE --
SO MAYBE IT WOULD BE SOME KIND
OF A PUT OPTION AT OUR STATE
COULD BECOME SOME KIND OF A
BUYER OF LAST RESORT SOMETHING
THAT WOULD.
CREATE ADDITIONAL CERTAINTY FOR
THE MARKET SO THAT WE CAN GO OUT
AND AND OBTAIN CAPITAL AND SO
THAT WOULD BE AND MY TAKE ON
WHAT THE BIGGEST CHALLENGE
SHOULD BE IN IN REALLY SCALING
UP AND TO BE ABLE TO MEET THE
AND ENHANCE TARGET.
ON THE IN STATE VERSUS OUT OF
STATE CONVERSATION SO OUR ENERGY
IS A LITTLE BIT UNIQUE BECAUSE
AS I MENTIONED IN MY TESTIMONY.
WE HAD SOME VERY ONEROUS
PIPELINE INJECTIONS STANDARDS IN
CALIFORNIA THAT ESSENTIALLY MADE
IT COST PROHIBITIVE TO INJECT IN
STATE AND SO THE ENTIRE INDUSTRY
WAS DEVELOPED OUT OF STATE. FOR
CALIFORNIA MARKET ALMOST
ENTIRELY DRIVEN BY THE LCF S. --
STACKED ON TOP OF THE RENEWABLE
FUEL STANDARD --
THAT'S CHANGING AT JUST A COUPLE
WEEKS AGO THAT CALIFORNIA
COUNCIL FOR SCIENCE AND
TECHNOLOGY RELEASED A STUDY THAT
HAD SOME RECOMMENDATIONS ON HOW
WE CAN LOWER THE STANDARDS --
TO ENABLE ON IN STATE MARKET.
I WILL SAY THAT THE CURRENT
RULES OF THE LC FS AND THE WAY
THAT THE CARBON INTENSITY
CALCULATION IS MEASURED.
THE USE OF SOMETHING THAT IS
CALLED THE GREEK MODEL AND
THAT'S DONE BY THE FEDERAL
ARGONNE NATIONAL LABORATORY.
AND IT'S VERY THOROUGH IT'S IT
DOES CREATE AN EVEN PLAYING
FIELD FOR CARBON INTENSITY FROM
ALL OVER THE WORLD.
AND AND SO BY DEFINITION THAT
MODEL WILL GIVE A LEG UP TO AN
IN STATE PROJECT BECAUSE YOU
HAVE TO TRANSPORT FUEL FURTHER
IF IT'S OUT OF STATE.
AND YOU GET DEEMED ON YOUR
CARBON INTENSITY I THINK
UNFORTUNATELY TO DATE THAT
DIFFERENCE HAVE HASN'T BEEN
ENOUGH. TO EVEN THE PLAYING
FIELD BETWEEN IN STATE AND OUT
OF STATE PROJECTS AND SO YOU'LL
SEE IS.
MONEY THAT'S BEING COMING DOWN
THROUGH CAP AND TRADE FOR
EXAMPLE FOR DAIRY GUY JESTERS --
OR ORGANICS RECYCLING FACILITIES
THAT KIND OF CAN HELP BALANCE
THAT OUT AND BUT I DID WANT YOU
TO KNOW THAT THAT THE MODEL THAT
IS USED BY CARD ACTUALLY DOES
GIVE --
INCENTIVE TO PRODUCE AND STAYED
THAT WAY THAT IS DESIGNED.
BALLOT TACKLING O. TO STOCK IT
WITH MUCH OF THE LEGISLATORS WE
OUT FOR MORE AND STATE THAT'S AS
OPPOSED.
TO YOU KNOW IN THAT YEAR EITHER
DOLLARS JUST AND WE ARE AND
THAT'S OUT OF STATE YEAH.
THAT'S WHY REFERENCE THE HELL IT
WAS REALLY THAT CARP ASSESSMENT
THAT I REFERENCE THAT LOOKS THAT.
TWO THIRDS OF THE COST OF
COMPLIANCE FLOWS OUT OF THE
STATE BETWEEN TWENTY NINETEEN
AND TWENTY THIRTY WHEN THAT IS A
CARB ASSESSMENT SO I DO
ENCOURAGE THE COMMITTEE TO
REALLY LOOK INTO THAT BECAUSE
THAT DOESN'T SOUND TO ME LIKE IT
STAYS IN THE STATE.
BUT THERE'S THERE'S BEEN A HUGE
GROWTH IN THE BIODIESEL INDUSTRY
IN PRODUCTION IN THE STATE AND
SEVERAL EXPANSION PROJECTS
SEVERAL PLANTS --
HAVE DONE MORE THAN ONE
EXPANSION PROJECT SO IT'S
DEFINITELY GROWING OUR CAPACITY
IS GROWING THERE'S PLANTS ARE
BEING BUILT TODAY.
PEERS PLANTS THAT ARE BEING
PLANNED TODAY SO ARM AND THAT'S
DRIVEN BY SOME CERTAINTY THAT'S
CREATED BY LAMAR FEEL CENTER
LOTS OF INVESTMENT --
THERE'S A PLAN THAT WAS
STRUGGLING WITH THE ITS
OWNERSHIP AND COMPANY FROM OUT
OF STATE CAME INTO CALIFORNIA
AND PURCHASE THAT PLANT.
AND IS BUILDING IT AND PLANNING
TO EXPAND IT SO WELL AND THAT'S
DRIVEN BY THE LOW CARB FEEL
STANDARD AND YET THEY STARTED
OUT BRINGING FUEL IN.
BUT THEN THEY SAID HEY THIS IS A
GREAT PROGRAM WE WANT. TO A PART
OF IT THERE'S A THERE'S
OPPORTUNITY.
CREATE MORE JOBS ARE GOING TO
CREATE MORE REVENUE MORE TAX
REVENUE -- I
MIGHT POINT OUT AND I THINK
OTHERS MIGHT AGREE THAT. ONE OF
THE DIFFICULTIES IS THE SEQUEL
LAW IN CALIFORNIA IN GETTING
PROJECTS OFF THE GROUND WE
UNDERSTAND THAT --
ASSEMBLY ARE FRUSTRATED FITS IT
TAKES TWELVE YEARS TO BUILD A
SUPER WALMART.
WELL YOU KNOW IT'S IT WERE
SUBJECT TO THAT AS WELL BUT YOU
KNOW IT'S IT'S IT'S A HARM A
TESTAMENT TO THE FACT THAT COME
THERE ARE SO MANY PLANTS BEING
BUILT IN HAVE BEEN BUILT AN ARM.
PLAN TO BE BUILT.
THAT THEY THEY CAN OVERCOME THAT
BECAUSE THERE'S A LOT OF
INCENTIVE IT'S CREATED BY LOW
CARB FEEL STANDARD CUT.
LET ME ASK YOU A GENERAL
QUESTION --
FOR THE LOW CARBON FUEL STANDARD
DOES IT MATTER WHICH YOUR
FEEDSTOCK IS SO YOU KNOW EARLIER
IN TESTIMONY ADVENTURE AND YOU
KNOW A COOKING GREASE FOR
INSTANCE AND COMPARE THAT TO
MAYBE ANIMAL FAT OR ANY OF THE
OTHER.
STOCK FEELS HOW DOES THAT AFFECT
THE MAKE UP OF THE FUEL AND WHAT
IT CAN BE USED [inaudible]
FOR WELL.
WEEKLY THERE'S WAYS OF
PROCESSING THOSE DIFFERENT
FEEDSTOCKS AND THE PLANTS.
THAT PROCESS THOSE --
FEEDSTOCK.
OFTEN CALLED INTO BIODIESEL
WORLD.
A MULTI FEEDSTOCK PLAN AND THEY
KNOW HOW TO PROCESS THEM ARE AND
AND BRING THEM TO MARKET.
SO WHAT'S DIFFERENT ABOUT THEM
IS DATE CARBON INTENSITY AS
DEFINED BY THE GREEK MODEL --
AND SO --
MOST OF THE PLANTS IN THE STATE
USING USED COOKING ALL THEIR SEE
I NUMBER THEIR CARBON INTENSITY
NUMBER --
WHICH IS THE OFFSET TO THAT
ROUGHLY --
HUNDRED A NUMBER THAT YOU SEE
FOR FOR PETROLEUM DIESEL FUEL.
HARPER.
FIFTEEN TO TWENTY SO THAT'S
ABOUT YOU KNOW WHEN 80% 85%
REDUCTION AND THAT'S MOST THE
PLANTS IN THE STATE.
ARM SOME OF THEM USE OUR ANIMAL
FATS WHICH ARE TYPICALLY MORE
LIKE --
THIRTY FIVE TO FORTY FIVE SOME
USE QUORUM WITCHER THIRTY THE I
MEAN SO THERE'S A VARIETY OF OF
CAR C. EYES FOR THE DIFFERENT.
OF FEEDSTOCKS.
BUT AS FAR AS WHAT CAN BE USED
FOR WHAT PURPOSE TYPICALLY THEY
CAN ALL BE PROCESSED SO THAT
THEIR THEY CAN BE BLENDED WITH
HARM WITH THESE.
CUT IT WOULD YOU NEED HIGHER
PERCENTAGES MAYBE I GUESS FOR
EVERYBODY WOULD YOU NEED A
HIGHER PERCENTAGE OF THAT PLAN
TO EQUAL THE SAME AMOUNT OF AN
OF THE MEGA JOULES LIKE ASSEMBLY
HAD PENSION EARLY ON FROM MEMBER
FIZZY.
LA OVER SOMEONE ON THIS PANEL.
AB BECAUSE OF TRYING TO FIGURE
OUT BECAUSE QUESTION I GET A LOT
BACK HOME IS YOU KNOW HE WON A
MOVE TO THESE RENEWABLE
STANDARDS AND BUT THE QUESTION I
GET FROM MY FRIENDS INSIDE THE
TRUCK DRIVERS BACK ON PEOPLE
THAT OWN TRUCKING FLEET.
IS THERE ASKING OKAY WHERE YOU
ONCE TO BLAND ACTS AMOUNT AND IN
THE FUTURE YOU'RE PROBABLY GONNA
ASK FOR MORE.
BUT AT WHAT POINT DOES THAT
START AFFECTING MY EFFICIENCY OF
MY ENGINES.
AND IS GOING TO COST ME MORE IN
TERMS OF FILLING UP MORE.
AS OPPOSED TO USING A BASE
DIESEL SO WITH BIODIESEL THERE'S
A VERY SLIGHT INCREMENTAL LA
DECREASE IT'S ABOUT. 324% AND ON
AND THAT AND ON A 20% BLEND.
IT'S I WOULD SAY DE MINIMUS AND
MORE HAS TO DO WITH HOW HEAVY
THE FOOT OF THE DRIVER IS AND
THEN THE ENERGY VALUE IN THE
FUEL -- BUT
YOU KNOW IF YOU [inaudible]
NUMEROUS STOPPED NOW THAT SAY.
A B. TWENTY BODIES MAY CONTAIN
UP 220% BODIES ALSO MORE AND
MORE TRUCK STOPS ARE DOING
THAT'S WHY BECAUSE THERE'S VALUE
IN IT FOR THEM.
COM AND AND IT'S AS SIMPLE AS
THAT ENTRY SO MORE MORE TRUCK
DRIVERS.
ART ARE UTILIZING IT MORE OF THE
OEMS THE TRUCK MANUFACTURERS ARE
ALLOWING HIGHER BLENDS NOW
BIODIESEL IN FACT MOST OF THE
HEAVY DUTY OEMS ALLOW 20%
PLANNED.
SO IT THIS IS SORT OF HAPPENING
BE SOME OF THE ARGUMENTS ABOUT
THIS I REMEMBER WHEN I USED TO
TRY TO MARKET TO FLEETS IN THE
CENTRAL VALLEY THE FARMS LEADS.
DIDN'T WANNA USE BY IDEAS THEY
DIDN'T WANT TO USE 5% OR EVEN 2%
THEY WERE SCARED OF IT THEY
THOUGHT IT WOULD.
YOU KNOW THEIR HEADLIGHTS WOULD
GO OUT AND ALL MANNER OF THINGS
WOULD HAPPEN.
EXCEPT YOU KNOW IF YOU LOOK AT
THE ACT COMMUNITIES IN THE
MIDWEST WHERE THEY GROW SOYBEANS
THEY ADOPTED OF MUCH QUICKER
BECAUSE THEY WERE GROWING THE
FEED STOCKS AND THEY WERE
ACTUALLY MAKING MONEY FROM IT.
AND LO AND BEHOLD IT NO LONGER
BECAME THREATENING WHEN THEY
REALIZE WHAT WE ACTUAR MAKING
MONEY OFF THIS.
THERE ARE PROGRAMS UP HERE IN
THE STATE TO TRY TO DEVELOP IN
STATE FEET STOCKS AS WELL
PURPOSE GROWN ENERGY CROPS --
A STEVE KAFKA WITH A UC DAVIS HE
RUNS THE BIO ENERGY --
UP PROGRAM THERE AND HE'S DONE
SOME TREMENDOUS WORK IN AND
DEVELOPING IN STATE PURPOSE
GROUND FEEDSTOCK FROM
BATTLEFIELDS [inaudible]
CUT NO.
WITH WITH THAT I I THINK.
BUT ONE I WANT TO KNOW HOW THE
PROJECT IN MY DISTRICT GOING
WITH THE DAIRY --
MOVING OVER BECAUSE ARCHIE GUYS
USING SOME OF THE AND WASTE FROM
THE DAIRY LEGUMES INTO BILE
DIESEL ISN'T THAT PART OF WHAT
YOU GUYS ARE DOING.
THAT SO THAT IS PART OF THE
PROJECT IS A VERY INTEGRATED
PROJECT IT'S ELEVEN DAIRIES THAT --
WERE DIE GESTURES ARE BEING PUT
IT INSTALLED ON THOSE AREAS AND
THEN A PIPELINE INTO --
INTO THE PLANT IN PIXLEY AND IT
WILL GO --
ONE OF THREE WAYS MIDDLE IT'LL
BE A FUEL SOURCE OF FOR
PRODUCING THE ETHANOL AND
BIODIESEL PLANT THAT THEY'RE
THEY'RE NOW BUILDING THERE AS
WELL -- AND
THERE ALSO [inaudible]
A GAS IMPRESSING STATIONS SO
DEPENDING ON THE ECONOMICS AND
THE DIVERSIFICATION AND WHAT THE
THE MARKETS ARE OPPORTUNITIES
ARE IT'LL EITHER GOING TO THE
PRODUCTION OF BIODIESEL --
INTO --
ETHANOL OR RENEW PANACHE GAS OF
REALLY SHOWING HOW ALL THREE OF
THESE THINGS ACTUALLY CAN CO
EXIST ON THE ON THE SAME LEADERS
RUN AWAY WHERE WORD DAIRY IS
ABLE.
TO SELL THE WAYS.
IN IN MEET THEIR STANDARD MATH
II STANDARDS YEAH.
WHO SO SO THEY'RE PROTECTED ON
THE DAIRY JI YES YOUR SIDE?
WHICH SOLVE THAT ISSUE FOR DAIRY
WHICH IS HUGE HUGE AND THEN
CREATING BIODIESEL.
CHILDREN LOWER THE COST OF
DIESEL FOR EVERYBODY.
AND OUR FINAL HEADED LOWER THAN
ASSN ALL AND CAPTURING NATURAL
NATURAL GAS RIGHT.
AND THEN --
WHAT'S REALLY INTERESTING IN THE
SO WHY HASN'T CALIFORNIA.
PAVE THE WAY FOR SEQUEL REFORM
FOR YOU GUYS YEAH IF IT GOOD
QUESTION BUT THE THE OTHER DAY
COMPLETE THAT LIVE BECAUSE THIS
PROJECT IS SUCH AN AMAZING
PROJECT --
IT'S WHEN WE CONVERT THE STARCH
IN THE CORN TO ETHANOL.
ALL OF DAY THE REAL FEED VALUE
IS CONCENTRATE IN WHAT WE CALL
DISTILLERS GRAINS --
AND THAT GOES BACK TO THE
DAIRIES. TO TO FEED THE ANIMALS.
TO THEN PRODUCE.
HASN'T THERE BYPRODUCT MILLER
MANEUVER THAT COMES BACK TO US
TO POWER THE PROCESS OF THEIRS
IS REALLY PERPETUAL MOTION
MACHINE IS BEING CREATED WHICH
THE ECONOMICS OF THAT
OUTSTANDING IN THE ENVIRONMENTAL
PERFORMANCE OF THAT IS.
IT'S QUITE EXEMPLARY
[inaudible]
GOT IT.
YEAH I'M JUST MAKING SURE THEY
GET THE CREDITS FOR NONE OF
LEADER CAUCUS WILL HELP WITH
THAT.
LIBYA FOLLOW UP ON THE QUESTION
I WAS ASKING DIESEL BUT I DON'T
KNOW MAYBE. THREE SPOILED
DEFERRED GASOLINE --
VIDEO AND IT'S MIXED BECAUSE
THERE YOU GO TO CERTAIN GAS
STATIONS AND IT'S MIXED WITH
ETHANOL FOR INSTANCE TO ADD TO
LOWER THE CARBON INTENSITY BUT
DOES THAT FUEL STILL HAVE THE
SAME AMOUNT OF ENERGY.
BECAUSE I MEAN THAT'S WHY I WAS
ASKING ABOUT COULD HEAR ABOUT IT
FROM THE TRUCKERS [inaudible]
NON OF REGULAR GAS POWERED
VEHICLES NOT I AND I I THINK
WHAT'S ALSO REALLY IMPORTANT AS
YOU KNOW.
WE OBVIOUSLY PLANNED UP 210%
ETHANOL CURRENTLY.
BEFORE THE LOW CARBON FUEL
STANDARD WE COULD BURN I MEAN WE
COULD BLEND UP 10% ETHANOL IT'S
AS WE ALL KNOW IT'S THE TYPE.
OF ETHANOL IN THE CARBON
INTENSITY THAT BECOMES THE
IMPORTANT PIECE OF THAT.
OF THAT DISCUSSION AND EVEN AS
WE PHAM AS WHEN WE WILL ALWAYS
COMPLY WITH THIS RIGHT RIGHT
BECAUSE THAT'S WHAT WE DO WE
COMPLY.
THAT DOES NOT MEAN THAT.
COMPLIANCE WON'T INCREASE COSTS
TO THE THE TWO PEOPLE THAT ARE
ARE THE TWO GROUPS THAT HAVE.
CONTINUED TO BE CONCERNED ABOUT
THE LOW CARBON FUEL STANDARD
WITCHES ECONOMISTS.
WHO CARE ABOUT COST?
AND CONSUMERS WHO CARE ABOUT
COST.
SO AGAIN AS WE BEGIN TO TALK
ABOUT HOW WE AS REFINERS
CONTINUE TO MEET THE OBLIGATION.
OF CARBON INTENSITY AT THAT 10% --
AT THE 10% LEVEL --
IT BECOMES IT IT'S AN
INTERESTING PROGRAM BECAUSE YOU
ARE OBVIOUSLY IF YOU.
BLEND INTO OUR FUEL TO MEET YOUR
COMPLIANCE OBLIGATIONS THAT YOUR
BEST AVENUE UNTIL NOTHING'S
AVAILABLE TO MEET THOSE CI
TARGETS AND WERE ONLY AT THREE
POINT 5%.
AND SO WHAT HAPPENS WHEN THAT'S
NOT AVAILABLE OR YOU DON'T HAVE
THOSE CARBON INTENSITIES IS YOU
HAVE TO GO TO THE CREDIT MARKET
TO COMPLY.
WHICH WE WILL.
THEREFORE THE HUNDRED FORTY NINE
DOLLARS KICK SAND IN ALL THOSE
COST COMPONENT STARTED.
SO ARE YOU SAYING RIGHT NOW THE
ONLY WAY YOU CAN MEET THE LCF.
AS BY BLENDING WELL I DON'T HAVE
THE LOWER AT THE LOWER SEE AT
THE LOWER PERCENTAGES RIGHT
BECAUSE WHAT LOW.
PERCENTAGES RIGHT NOW IN THE
CARBON INTENSITY THREE POINT 5%
NOT 10% NOT 18% RIGHT SO WHERE
THE LOWER LEVELS OF THE PROGRAM.
SO YOU KNOW ALTHOUGH IN THE
EARLY STAGES YOU WERE ABLE TO
DEVELOP CREDITS BECAUSE YOU WERE
ABLE TO MEET THOSE REQUIREMENTS
AS THESE AS THESE PERCENTAGES
INCREASE WHICH THEY WILL AS WE
KNOW GETS THE BIKE PATH.
THEN THAT'S WHERE SOME OF THE
BEST FOR THE CRUNCH STARTS
COMING IN.
FROM FROM WHAT'S AVAILABLE AND
THE COST.
GOTTEN SO READ OUR THEORY AND
THIS IS I THINK YOU REFERRED TO
IT EARLIER THAT.
AIR BE REDUCED.
THE GOAL FOR TWENTY TWENTY EIGHT
FROM THE THREE POINT FIVE NOW
WE'RE GONNA GO TO SOME POINT
FIVE AS OPPOSED 210% AND IT'S
IT'S BACK LOADING AGAIN RIGHT.
IF IF I GATHERED THERE'S NO
QUESTION THAT THE YOU KNOW THE
TARGETS ARE AMBITIOUS AND THAT'S
WHY -- YOU
KNOW WORKING WITH THE IT WAS THE
MEMBER COMPANIES IN.
AND OTHER --
LIQUID FUEL PROVIDERS YOU KNOW
THAT IS THE THE MOST DOMINANT
FUEL AND WILL BE FOR QUITE SOME
TIME AND WHAT WE DO TO CONTINUE --
TO IMPROVE THE PERFORMANCE AND
DRIVE DOWN THE CARBON INTENSITY
OF LIQUID FUELS AT AFFORDABLE
COST AND THAT'S WHERE WE THINK
THAT THE OPTION TO DUBLIN MORE
BY FEELS.
ON THE IS.
IT IS VERY IMPORTANT BECAUSE
TODAY AND IT'S FALLING BUT OUR
ETHANOL ON AVERAGE.
IT'S 30% LASSEN GHASTLY SO
THEORETICALLY IF OF THE LIQUID
FUEL IS A HUNDRED SAN GASOLINE A
CARPET GO 230% REDUCTION.
WE'D BE THERE AND WITH WITH
ETHANOL THE LOWER PRICING
GHASTLY WE'RE NOT PROPOSING THAT
WE'RE PROPOSING. TO TO GRADUALLY
INCREASE THE PLANS TO TAKE FULL
ADVANTAGE OF THE FUEL PROPERTIES
OF ETHANOL NOT ONLY CARBON
INTENSITY BUT AKANE SO TO IN
RESPONSE YOUR QUESTION.
ON IS THE THE ENERGY
[inaudible]
DOES HAVE PER UNIT BALLING
[inaudible]
VERY GOOD.
ASPECT OF GASOLINE IS IT'S IT'S
VERY DANCE ENERGY --
ETHANOL'S ENERGY DENSITY PER
UNIT VOLUME PER GALLON IS ABOUT
30% LESS IN GASOLINE BUT IT'S
OCTANE IS A HUNDRED AND FOURTEEN
SO IF YOU OPTIMIZE AROUND THE
OCTANE OF ETHANOL.
WHICH IS WHAT THE THE NEW
GENERATION OF ENGINES WILL DO
OUGHT TO RUN ON HIGHER OCTANE
FUELS YOU YOU TAKE THAT THAT
LOSS OF ENERGY DENSITY.
AND YOU MORE THAN GAIN IT BACK
THROUGH HIGHER PERFORMANCE
BECAUSE OF THE OCTANE SO THAT'S
THAT THE OPPORTUNITY AND WHY
HIGHER BLENDS ARE REALLY A SWEET
SPOT KNOWN ONLY FROM.
A AYE ENVIRONMENTAL PERFORMANCE
BUT FROM A HIGH PERFORMANCE OF
OF AN ENGINE WHERE YOU CAN MORE
THAN OFFSET.
THE AT THE END RIGHT ANY CAR
EARLY FAMILIES ARE MORE
CONCERNED ABOUT MILES PER GALLON
VERSES --
OCTANE WILL A BUT THAT'S THE
POINT IS I TOTALLY AGREE WITH
YOU IF YOU HAVE AN ENGINE THAT --
RUNS ON A HIGHER OCTANE FUEL YOU
GET MORE MILES PER GALLON SO YOU
CAN TAKE A HIGHER LEVEL OF
ABSENT WANTED TO MAKE SURE YOU
WENT THERE TO THE MILE YEAH GALA
MILES PER GALLON.
AND OCTANE ROSBERG ALLEN IS WHAT
COUNTS YEAH EVERYBODY'S GOING
OKAY THE THE COST IS GOING UP
BUT IF I CAN'T DRIVE AS FAR
[inaudible]
THEN.
WHAT DOES THAT REALLY MATTER
WILL NOT SEE IT REYES OF RECALL
YOU'LL GOING UP A LITTLE BIT BUT
I CAN DRIVE FARTHER?
THEN THERE'S A BALANCE.
THOSE ARE ANY ENGINES RIGHT NOW
THAT ARE CURRENTLY BEING USED
WITH THE HIGHER OCTANE.
BUT THERE ARE A ENGINES AND
DEVELOPMENT THERE ARE --
CARS IT'S A MUCH USE PREMIUM SO --
TURBOCHARGING IS IS WHICH MOST
NEW CARS HAVE IS ACTUALLY TAKING
ADVANTAGE OF THAT --
THAT OCTANE --
YOU CAN THERE'S ABOUT AND OVER A
MILLION CARS IN CALIFORNIA THAT
CAN RUN 85% ETHANOL.
AND YOU CAN BUY THAT FUEL ATTA
SEVENTY FIVE CENTS PER GALLON
LISTEN GASOLINE TODAY RIGHT HERE
IN SACRAMENTO [inaudible]
OKAY.
I HAVE A LIST OF MORE QUESTIONS
WE HAVE ANOTHER PANEL.
LET ME JUST ASK THERE'S ANY
ADDITIONAL QUESTIONS.
JUST AND AS THESE THINGS DEVELOP
ABOVE THE TOP OF THE TWENTY OH
SPECIAL YOU TILL --
AS AS THINGS GO FOR ESPECIALLY
AS WE GET INTO LOOKING AT
LEGISLATION FOR NEXT CYCLE.
ON WAYS THAT --
WE CAN WORK TOGETHER TO COME TO
SOLVE SOME OF THESE THINGS AND
DEAL WITH SOME OF THE STUFF IN.
HOPEFULLY MOVE THE BALL ON SOME
III OUR SECRET STUFF IS A WHILE --
MY FEELING IS IF AS A ST WERE
GOING TO AYE BASICALLY MANDATE
THIS WE NEED.
TO DO EVERYTHING IN OUR POWER IS
A STATE TO EXPEDITE IT MAKE IT
[inaudible]
COST.
FROM THE FOR OUR PEOPLE.
CORRECT YEAH I THINK THAT'S ONE
OF THE THINGS WE HEAR ABOUT BACK
IN OUR DISTRICTS AS A COST
CONTAINMENT AND WHAT ELSE MAINLY
MEANS TO EACH CONSUMER
[inaudible]
AS AS A DRIVING THEIR VEHICLES
AND YOU KNOW THERE'S POLICIES
THAT THAT HAVE BEEN PUSH FORWARD
AND AND THE STATE TO START
MOVING TOWARDS NEAR.
ZERO EMISSION VEHICLES OR ZERO
EMISSION VEHICLES BUT NO I THINK
WE'RE A LONG WAY FROM BEING
THERE --
UNDER PERCENT SPACE AUTHORED A
BAND OF CALIFORNIANS AND MEETING
IN STATE PRODUCTION.
AS WE DO THAT AND SO ONE OF
THINGS THAT WE NEED TO BE
MINDFUL OF THIS WHAT IS THE COST
CONTAINMENT.
I FOR THAT AS AS THE STATE
CONTINUES TO MOVE IN THAT
DIRECTION.
AND ADD THE TIMELINE FOR THAT
THE WHICH IS WHY WE WANTED TO
HAVE THIS HEARING EARLY ON
BEFORE WE SEE WHAT THE
REGULATIONS ARE FROM MAYOR BE IN
YOU KNOW MOST LIKELY WILL
PROBABLY HAVE A FOLLOW UP
HEARING.
AS SOON AS THEY ARE BE HAS
REGULATIONS AND JUST SEE.
HOW IT FITS INTO THE ENTIRE
STRUCTURE BECAUSE YOU KNOW WE DO
HAVE ANOTHER PROGRAM THERE'S CAP
AND TRADE THAT'S OUT THERE THAT
THIS BODY PASSED LAST YEAR?
FATHER'S PREVIOUS LEGISLATION
WHERE THEY GO ALL THE WAY. TO
TWO OR THREE EIGHTY SEVEN AND
ALL THE OTHER HOST OF OTHER --
PIECES OF LEGISLATION THAT A
PASSED.
BUT I KNOW --
ONE THING THAT I HEAR ABOUT FROM
CONSUMERS BACK HOME AND ALSO
SOME OF MY COLLEAGUE SAYS IN
ULTIMATELY WHAT DOES THIS MEAN
TO THE CONSUMER AND WHAT TYPE OF
IMPACT IS THIS HAVING.
NOT ONLY ON GREENHOUSE GAS
REDUCTIONS BUT WHAT IS IT DOING
FOR FOR FOLKS HERE IN CALIFORNIA
ACTUALLY GROW JOBS IN THE STATE
AS COMPARED TO OUR CALIFORNIA
TAXPAYERS IT'S ADVISING THINGS
HAPPENING OUT OF STATE.
WHICH THEN --
YEAH TAXPAYERS AND HAVE LITTLE
GRIEF OVER.
UP BUT THANK YOU FOR THE
TESTIMONY APPRECIATE THAT
OBVIOUSLY THIS IS OUR I THE
FIRST STEP IN MANY STEPS AS WE
CONTINUE TO MOVE TOWARDS WHAT'S
COMING OUT --
FROM THE FROM THE ADMINISTRATION
AND AS WE CONTINUE MOVE FORWARD
AND TALK ABOUT CALIFORNIA'S
FUTURE.
SO THANK YOU THANK YOU VERY MUCH
AND THANK YOU FOR CONTINUING TO
CONSIDER WHAT THAT RIGHT ENERGY
MAKES IS TO DO ALL THREE THINGS
THE ENVIRONMENT THE ECONOMY AND
SOCIAL QUALITY AS WELL SO THANK
YOU ALL VERY MUCH.
THANK YOU YOU [inaudible]
THANK YOU.
OUR SOULS GO TO MOVE TO THE
THIRD PANEL.
WE HAVE --
DAVID HACKETT WITH STILLWATER
ASSOCIATES CAN'T --
LEACOCK WITH PER TERRA.
AND GEORGE WARRANTY WITH SAN
JOAQUIN RANCHER REGIONAL TRANSIT
I BELIEVE --
MISTER HANKEY YOU HAVE A
PRESENTATION YOU LIKE TO BEGIN
WITH [inaudible]
CORRECT [inaudible] FOR OKAY.
SO FLEW COULD MOVE THROUGH THIS
AND THE OFFICIAL TWITTER WITH
OUR COMMENTS.
WHEN YOU'RE READY TO BEGIN?
GOOD AFTERNOON CHAIRMAN
[inaudible]
ALISON COMMITTEE --
MINING STATE HACKETT I'M THE
PRESIDENT STILL WATER ASSOCIATES.
WE'RE A TRANSPORTATION ENERGY
CONSULTING COMPANY HEADQUARTERED
IN IRVINE.
NOW TO SAY THAT HIGH VISIT THE
BEEN CALIFORNIAN FOR A LONG TIME
THIS THE FIRST TIME IN THE
CAPITAL.
SO IT'S KIND OF COOL.
APPRECIATE THE OPPORTUNITY TO
COME VISIT YOUR HOUSE OUR HOUSE
AT A GALA AT NICK'S FREMONT
PEOPLE'S HOUSE THANK YOU FOR
BEING HERE --
THAT WE'VE WE'VE PAID ATTENTION
TO THE LCF ES SINCE THE GOVERNOR
ANNOUNCED IT --
THINK I PROBABLY SAW NEIL WHEN
HE WAS ON THE STAGE.
WITH THE GOVERNOR SCHWARZENEGGER
WHO THAT HAPPENED --
AND SO -- WE
PAY ATTENTION TO IT WE PUBLISH A
NEWSLETTER LOW CARB FEEL
STANDARD.
AND AS WELL I'M A MEMBER OF OF
WHAT WAS THINK CALIFORNIANS YOU
COMMISSIONS PATROLLING MARKET
VISOR COMMITTEE.
SO -- Y..
AMONG THE PRACTICE AREAS OUR
ENERGY POLICY.
AND THROUGH A LOT OF CLIENTS IN
THE SPACE SORT OF ALL OVER THE
SPECTRUM.
AND AND REALLY WE HAVE A DEEP
KNOWLEDGE OF ALL OF THE ISSUES.
BUT YOU'RE INTERESTED IN
CALIFORNIA'S ENERGY FUTURE --
BUT AS HEARD MOST PEOPLE YOU
KNOW REALLY DON'T UNDERSTAND THE
REGULATION --
AND TODAY WE'LL TALK ABOUT HOW
THE PROGRAM WORKS --
SOME SUCCESSES AND CHALLENGES TO
DATE.
THE COST TO CONSUMERS OF THE
PROGRAM AND AND I I DON'T KNOW
THAT WEEPS REALLY ANYBODY ELSE'S
TALKED ABOUT THAT.
IF YOU HAVE A LOT.
IN THE SUN IN THE FUTURE PROGRAM.
SO ONCE WE'RE DONE YOU KNOW WHAT
THE PROGRAM'S TODAY AND WHERE
IT'S HEADED --
GLITZY WE'VE TALKED ABOUT CARBON
INTENSITY REDUCTION.
AT YOU KNOW THAT WE WILL FEELS
GENERATE CREDITS AND AND
WITHDRAWING FUELS [inaudible]
GENERATE DEFICITS.
AND ALL ABSTRACT BY CAR.
HERE'S A PRETTY GOOD CHART NOW
WHAT YOU HAVE IS IN BLACK AND
WHITE.
NC INSERT BECOMES A REAL LIFE
TEST -- BUT
IF THIS CHART A GIVES YOU SUCH.
AN APPRECIATION FOR HOW THE
AVENUE WILL FEEL STACKED UP PRO
MUCH THEY CONTRIBUTE.
TO LET'S TALK ABOUT CREDITS.
SO THE RED ONES ARE VARIOUS
KINDS OF ETHANOL.
AND THE BLUE ONES [inaudible]
OUR BIODIESEL AND RENEWABLE
DIESEL.
AND THEN WHAT YOU SEE.
WITH THE GREEN STRIPE HERE IS
REALLY KIND OF THE GROWTH OF
RENEWABLE NATURAL GAS SAID.
IT GIVES YOU AN IDEA WHAT THESE
PERCENTAGES ARE.
AND THEN FROM THERE IT'S IT'S
THE ELECTRICITY ON ROAD OFF FROM
THE ROAD.
ELECTRICITY PRIMARILY.
BUT AND SO YOU ASKED A QUESTION
EARLIER ABOUT HOW MUCH IS BLUE
HOW MUCH THESE CREDITS ARE
CAUSED BY COME FROM BLENDING AND
HOW MUCH ARE PURCHASED.
RIGHT SO THE REFINERS AND
IMPORTERS.
ARE BLENDING WITH A RED ETHANOL.
BLUE BIODIESEL RENEWABLE DIESEL.
AND THEY'RE BUYING FROM THE
CREDIT PRODUCERS.
OF RENEWABLE NATURAL GAS
ELECTRICITY THE REST OF OKAY --
MOVE ON TO PRICES.
SO A ALEJO CHAU CHIU --
THAT CREDIT PRICES.
IN DOLLARS PER METRIC TON.
AND THAT'S THE BIG BLUE LINE AND
THE Y. AXIS LABELS SHOWS YOU THE
DOLLARS PER TON.
THE A OTHER LINES --
OTHER WINDS ARE FOR GASOLINE AND
DIESEL.
AND THEIR PRICES ARE ON THE
RIGHT HAND Y. AXIS.
AND SO WHAT THIS SHOWS
ESSENTIALLY IS THAT.
AS OF LAST WEEK THE COST FOR
CONSUMERS. FOR ELSE --
FOR GASOLINE WAS ABOUT THIRTEEN
CENTS AND FOUR DIESEL WAS A BIT
MORE THAN.
EIGHT AND AT AN AS YOU DISCUSS
THE MAJORITY OF THE OF THE
REVENUE FOR THESE CREDITS.
OF FLOWS OUT OF STATE I THINK
CARD SAID 13%.
KNEELS NUMBER WAS 15%.
BUT IT'S IT'S A BIT OF THE VAST
MAJORITY BUT IN A DOESN'T STAY
HERE BECAUSE OUT OF STATE
[inaudible]
OKAY SO WHERE'S THE PROGRAM NOW
AND AND HOW TO GET HERE.
WELL WE TALKED ABOUT.
CARBON TNC REDUCTION HAS REACHED
THREE AND A HALF PERCENT REACH
THREE AND A HALF PERCENT IN.
SEVENTEEN WAS REALLY DESIGNED TO
BE FURTHER ALONG THAN THAT.
BUT YOU CAN SEE THAT --
LAWSUITS.
CURRENT HELD THE REDUCTION LEVEL
CONSTANT IN THE MIDDLE OF THE OF
THE PROGRAM.
SO HERE WE ARE [inaudible] FOR
SEVEN YEARS OR SO REALLY INTO
THE PROGRAM WE GOT THREE AND A
HALF CENT.
AND AS KATHY SAID.
TRINITY EASY THREE AND HALF
HOURS.
IT'S GOING TO BE TOUGHER FROM
HERE.
AND LET THESE OTHER STRIPED BARS
REPRESENT.
WHAT -- THEY
ARE BE IS --
HAD HIS.
NO RECOMMEND THEIR PROPOSAL TO
GET TO A 20% REDUCTION BY.
TWENTY THIRTY THAT'S HOW MUCH
REDUCTION THERE IS TO GO
[inaudible]
FROM HERE.
SO THEN THE LEGISLATIVE ARE
ANALYST'S OFFICE TALKED ABOUT
CREDITS AND DEFICITS IN THE
COULD TALK ABOUT A BANK.
HERE YOU CAN SEE THAT BANK WHERE
THE BAR CHARTS IN THE MIDDLE
THERE THOSE SIR THE DIFFERENCE
BETWEEN CREDITS AND DEFICITS
THEY WERE GENERATED ON THE
CORALIE BASIS.
AND THEN THE REDLINE IT'S
ACCUMULATED AMOUNT YOU CAN SEE
THAT.
BUT THAT BOTTOM THAT BANK GOT TO
BE ABOUT TEN MILLION CREDITS.
AND SEVENTEEN BUT BUT SOME OF
CREDITS AND DEFICIT WAS ABOUT
FLAT SO THAT THE BANK DIDN'T
BUILD ALL.
HERE IN SEVENTEEN AND I WOULD
SAY WE WERE SORT OF SURPRISED BY
THAT WE THOUGHT THAT THERE WOULD
BE A BILL TO THE BANK.
THE BANKS IMPORTANT BECAUSE IT
PROVIDES.
A IT PROVIDES LIQUIDITY. FOR THE
FOR THE TRADING SYSTEM BUT IT'S
ALMOST LIKE YOU KNOW THAT OF ANY
OTHER KIND OF A BANK IF IF THAT
THERE'S MONEY AS A CASH IN THE
AND THE AND THE BANKER BUT HE'S
HAPPY AND THINGS FLOW BACK AND
FORTH.
AND WHAT WE THINK ONE OF THE
THINGS WE THINK ABOUT WHEN WE
LOOKED AT THE PRICES WILL RESUME
BACK TO PRICE REAL QUICK HERE
[inaudible]
SEE.
A PRETTY DRAMATIC MOVEMENT
PRICES --
THIS YEAR AND I THINK WE THINK
THAT THAT'S PROBABLY RECOGNITION
BY THE MARKETPLACE [inaudible]
THAT -- THAT
THE THAT THE BANKS DONE BUILDING.
AND IS LIKELY TO START DRAWING
THAT IS TO SAY THAT THERE BE A
SUPPLY DEMAND IMBALANCE THAT BE
MORE DEFICITS CREATED THING
CREDITS.
NOW AS I DO JUST BECAUSE IN OUR
MOVING FROM THAT THREE AND A
HALF PERCENT THE EASY.
THE EASY PART NOW GET HERE OR
DIDN'T PARTY NEEDS YOU CAN ONLY
GO BACK UP AGAIN YOU CAN SEE HOW
THESE.
THE DEFICITS SORT OF WORK
ROUGHLY CONSTANT WHILE THE
LAWSUITS ARE GOING ON AT ONCE
THAT WAS SETTLED.
THEN.
THE REQUIREMENT RATCHETED DOWN
STEPPED FOR SEVENTEEN SIXTEEN
AND THEN A STEP.
FOR SEVENTEEN SO YOU CAN SEE
THOSE STEPS IN AN AND NUMBER
BEAUTIFUL PLACES.
SO NOW THE CONSUMER COSTS ARE
STARTING TO RISE.
AND WHAT THIS [inaudible]
THIS SHOWS INFANTS PER GALLON.
AND DOLLARS PER TON THE HEALTH
EFFECTS CREDIT PRICES.
IN THE ESERVER GASOLINE
[inaudible]
BUT SO LOW LEVELS IT WASN'T
KERMIT NOMINAL COST EARLY.
AND BY.
TWENTY SEVENTEEN TOTAL WAS ABOUT
FOUR POINT SIX CENTS PER GALLON
[inaudible]
SO.
THAT DIDN'T SOUND LIKE MUCH BUT
IT IS -- SIX
HUNDRED EIGHTY MILLION DOLLARS.
OF OF CASH TWIN OUT FROM
CALIFORNIA CONSUMERS POCKETS.
85% OF IT WENT SOMEPLACE ELSE
[inaudible]
OKAY THEN GOING FORWARD.
THE NINE POINT SEVEN THAT WE
HAVE IN HERE --
FOR TWENTY EIGHTEEN THAT
REPRESENTS THE AVERAGE VALUE FOR
ALPHA FAST CREDIT PRICES.
YEAR TO DATE.
NOT AVERAGE AT A HUNDRED FORTY
FIVE ALTHOUGH --
BUT THE LATEST VALUES HAVE BEEN
LIKE A HUNDRED EIGHTY DOLLARS A
TON.
AND THEM THESE HIGHER PRICES
REPRESENT.
VALUES THAT ARE CLOSE TO THE
CREDIT CLEARING MARKET PRICE
IT'S VERY DIFFICULT.
TO FORECAST PRICES IN THIS
SYSTEM YOU DON'T REALLY KNOW
WHAT THE SUPPLY DEMAND BALANCE
FOR CREDITS AND DEFICITS ARE
GOING TO BE IT'S HARD TO KNOW.
BUT IF YOU SAY THAT WE THINK
LISTS THAT A RB IS GONNA HAVE A
TOUGH TIME.
COMING UP WITH ENOUGH CREDITS
THAT THIS PROGRAM COULD RUN
CLOSE TO THE CREDIT CLEARANCE
PRICE.
THOSE ARE THE PER GALLON PRICES
THE CONSUMERS WOULD BE.
THAT'S WHAT THESE PRICES
REPRESENT [inaudible]
OKAY.
AND SO THE BIG SHOCK.
CALIFORNIA DRIVERS PAVE A LOT.
IN GASOLINE TAXES AND FEES.
AND HERE YOU SEE THAT COMPONENTS --
A FEDERAL EXCISE TAXES STATE
EXCISE TAX.
ALRIGHT UNDERGROUND STORAGE TANK
FEES THIS STATE [inaudible]
ARM.
STATE AND LOCAL SALES TAX FEELS
UNDER THE CAP WHICH IS THE CAP
AND TRADE [inaudible]
BAH COMPONENT.
AND THEN --
LOOK APPEALS.
TO AND SO YOU YOU ADD UP THIS
CHART YOU GET ABOUT FORTY TWO
CENTS A GALLON MORE.
U. S. AVERAGE.
OKAY SO WHERE IS THE PROGRAM GO
FROM HERE --
IS WE TALKED ABOUT THE RITUAL
PROGRAM RITUAL SCHEDULES BEING
MODIFIED OUT.
TO TWENTY THIRTY AND THE TWENTY
TWENTY GOAL GETS CHANGED FROM
10%.
TO FROM 10% TO SEVEN HAVE
PERCENT.
THAT'S A GOOD THING [inaudible]
BECAUSE A KATHY DESCRIBED IS
COSTING PAYMENT.
WHAT I'VE BEEN SAYING FOR A LONG
TIME WAS?
THE PROGRAM WAS IN FEASIBLE AND
THEY NEEDED TO MOVE THE GOAL
POSTS.
AND SO BY MOVING IT BACK TO
SEVEN HALF PERCENT THEY'VE
ACCOMPLISHED THAT [inaudible]
NOW.
WHAT'S THE PROGRAM GONNA HAVE
YOU GONNA IF YOU COULDN'T
DECREASE CARBON INTENSITY BY.
20% AND THEN IN THE NEXT TEN
YEARS.
YOU'RE GOING TO HAVE TO DO
SOMETHING ABOUT GASOLINE
[inaudible]
RIGHT -- THE
GRAPHIC REDUCE CARBON TENSELY
GASOLINE REDUCE THE AMOUNT OF
GASOLINE THAT'S THAT'S LET'S GO
CONSUMED YOU HAVE TO DO
SOMETHING BACK GHASTLY.
WHICH IS NOT GONNA BE EASY GIVEN
THAT GASOLINE DEMANDS NOT PEAKED.
IN THE DESPITE LE ESTIMATES OF
ALL KINDS OF FORECASTERS ME
INCLUDED --
GASSING MAN HAVE GONE DOWN
[inaudible]
NO [inaudible]
KATHLEEN GETS IT'S MORE
EXPENSIVE IT THAT'LL CHANGE BUT
IT HASN'T IT HASN'T PICKED YET
THAT WE CAN SAY.
ANOTHER THING THAT WOULD BE GOOD
FOR THIS PROGRAM IS HIGH OIL
PRICES.
RIGHT HIGHER OIL PRICES WOULD
REDUCE.
A WELL DEMAND [inaudible]
AND AND A LIKELY WOULD SPUR
INVESTMENT AND INNOVATION.
IN THE SPACE AND HOW IT WOULD
SAY THAT THE ONLY SAY THE
HEALTHCARE PASSES.
HAS SPURRED INNOVATION YOU'VE
HEARD ABOUT IT FROM PACIFIC
ETHANOL INTELLIGENCE PRETTY
INNOVATIVE THINGS CONNECTING
GARY'S OF PIPELINES AND HEARD.
MOVE STUFF AROUND FATS
INNOVATION [inaudible]
BUT I DON'T KNOW WHICH CAN COUNT
ON HIGH CRUDE PRICES.
GIVEN THAT THE SUCCESS OF THE
DRILLERS.
IN TEXAS AND NORTH DAKOTA AND
PLACES LIKE THAT [inaudible]
OKAY SO.
HIGH PRICES ARE NEEDED TO
ENCOURAGE NEW INVESTMENT.
WHO ONE OF THINGS THAT WE THINK
MIGHT VERY WELL HAPPEN AS THAT
THE REFINERS WILL GET INTERESTED
MAKING RENEWABLE DIESEL HER
NOBLE GASOLINE?
AND SO THEY WILL HIM WE HAVE
IMPLY THAT THE PRODUCTION OF
THAT HAVE THAT HANGING --
INDUSTRIAL SCALE.
SO THAT MIGHT VERY WELL HAPPEN --
CERTAINLY.
VERY RAPID ADOPTION OF
ALTERNATIVE VEHICLES IS REQUIRED
IN ORDER TO MEET THE KINDS OF
GOALS THAT THEY ARE BE IS
TALKING ABOUT.
AND THEN ONE OF THINGS THAT.
THAT BOTHERED ME OVER THE
WEEKEND WAS READING AN ARTICLE
ON THE STUFF AND SEE IF YOU SEE
AS HAVING A FIGHT WITH THE
PUBLIC UTILITIES OVER.
HOW MUCH THEY GONNA SPEND TO PUT
IN CHARGING STATIONS
[inaudible]
I THOUGHT.
YOU KNOW THERE'S WHAT ALL WAS
EVERYBODY ELSE SPENDING ON THAT
STUFF [inaudible]
RIGHT.
INCOME TAX REBATES UTILITY GREAT
INCENTIVES AB ONE EIGHTEEN
GRANTS [inaudible]
HOV LANES.
CAP AND TRADE AUCTIONS SENATORS --
CREDIT SALES FOR YOU TO OF ALL
THIS STUFF.
I DON'T KNOW WHERE TO GO TO FIND
OUT WHAT TAXPAYERS AND CONSUMERS
ARE PAN FOR ALL THAT STUFF.
AND I DON'T KNOW.
WHICH ONES ARE MORE COST
EFFECTIVE THAN THE OTHER ONES.
SO.
IT SO WHAT WEEK SUGGESTS HERE
WAS A CLEARINGHOUSE TO PROVIDE
TRANSPARENCY FOR THE TOTAL COST
OF VB INSIDE OF SPENDING
PROGRESS.
NOT SAYING IT'S A BAD THING I
JUST WANT TO KNOW WHICH ONES.
ARE THE BEST.
AND AND SHOULD GET THE MOST
FOCUS.
AND THEN CONTINUING THE FAME
MORE CREDIT GENERATIONS REQUIRED.
TO TO ACHIEVE CARBS GOALS.
AND THERE THERE IS A PRETTY LONG
LIST OF THINGS.
THAT -- THAT
OUGHT TO BE DONE AND AND THEN
THEY'RE GOING --
TO OPPORTUNITIES OUT THERE AS
WELL A ONE THAT SEEMS TO BE
PRETTY INTERESTING FOR EXAMPLE
WAS ARM.
I STEAM GENERATION FOR ENHANCED
OIL RECOVERY.
A COUPLE OF PROJECTS OUT THERE
YOU WOULD USE SOLAR SOLAR POWER
TO CREATE STEAM. TO LEARN HOW.
TO INJECT IN IN THOSE HEAVY OIL
WELLS IN THE KERN COUNTY TAX A
COUPLE OF PROJECTS AROUND THAT
OUR MATERIAL [inaudible]
HAVE DATA.
WE'RE GOOD YOU WATCHING PRETTY
QUICKLY [inaudible]
OKAY [inaudible]
SO HAVE.
BEFORE TODAY MAYBE MAY NOT A BUG
UNDERSTOOD THE LC A FAST.
BUT NOW I'VE GOT A BASIC
UNDERSTANDING SO WE CAN PICK
QUESTION.
I CAN APPRECIATE THAT LEVEL
CONTINUE TESTIMONY THEN COME
BACK QUESTIONS.
PLEASE YOU I GET UP IN ASSEMBLY
MEMBER SALAS ASSEMBLY MEMBERS.
MY NAME IS GEORGE FOREMAN TIM
THE GRANTS MANAGER WITH US SAN
JOAQUIN WAS NO TRANSIT DISTRICT
FOR THE BUS SYSTEM WHERE LOCATED
OUT OF STOCKTON CALIFORNIA.
AND WE WE SERVE THE THE ENTIRETY
OF THE SAN JOAQUIN COUNTY UMMAH.
AT FOURTEEN EIGHT SQUARE MILES
WE HAVE A HUNDRED THIRTY THREE
BUSES --
PARA WE OFFER FIXED ROUTE.
SERVICE WITHIN STOCKTON IS WELL
IT WENT AS WELL AS INNER CITY
TRIPS BETWEEN.
ON THE CITY'S IN SAN JOAQUIN
COUNTY --
PROVIDES ROUTES TO THE OF BAY
AREA BAR AND SAY AND HERE IN
SACRAMENTO AS WELL --
WERE ALSO --
DEPLOYING A VARIETY OF
ALTERNATIVE TRANSPORTATION MODES
SUCH AS MOBILITY ON DEMAND WHICH
IS WHAT UBER LIKE SERVICE.
THAT IS --
ALSO EIGHTY ACCEPTABLE AND WE
ARE ALL WE ALSO OPERATE A VAN
PULL UP PROGRAM.
BUT FOR THE COUNTY AS WELL FOR
COMMUTERS --
IN OUR TO HAVE BEEN ON THE
FOREFRONT --
OF THE TRANSIT --
TRANSIT AGENCIES AS FAR AS THE
PLANE --
ALTERNATE FUEL TECHNOLOGIES IN
TWO THOUSAND FOUR WE WERE IN
THAT ONE OF THE FIRST TO DEPLOY
HYBRID OF BUSES AND IN --
TWO THOUSAND THIRTEEN WE
DEPLOYED THE FOR OUR FIRST TWO
ELECTRIC BUSES CURRENTLY WE
OPERATE TWELVE ELECTRIC BUSES
AND WERE OPERATE.
ABOUT --
SEVENTEEN BY THE END OF THE YEAR --
SO THE THE LCF LC FF --
WAS ALSO AN IMPORTANT
CONSIDERATION IN RTD'S CAN --
DECISION TO CONVERT TO THEIR
MISSION --
BUSES AND THAT'S SPECIFICALLY
ARE RECENT.
A GOAL OUR BOARD APPROVED TO
CONVERT OUR ENTIRE STOCKTON FLEE
2100% THEIR MISSION BUSES BY --
TWENTY TWENTY FIVE AND WE ADULTS
WE ALSO --
OPERATES SEVERAL BUS RAPID
TRANSIT ROUTES OF FOUR ROUTES
FIVE BY THE END OF THIS YEAR --
AND WE ARE ALSO PROUD THAT OUR
FOURTH BUS RAPID TRANSIT ROUTE--
WOULD SAY IT WAS THE FIRST ALL
ELECTRIC BUS RAPID OR ALL
BATTERY ELECTRIC BUS RAPID
TRANSIT ROUTE IN THE NATION AS
WELL -- CHI
JUST ASK YOUR QUESTION THERE IS
YOU SEEMS LIKE YOU'VE BEEN
MOVING TO EACH TECHNOLOGY ARE
EACH DIFFERENT FEEL TYPE.
HAVE YOU SEEN A DIFFERENCE IN
THE PRODUCTIVITY OF THE BUSES OR
ARE THEY ARE THEY MORE EFFICIENT
AT THE COSTS.
ACOSTA BEING LESS BECAUSE OF
FUELS WHEN.
COSTS LESS OR IS IT COSTING MORE
AND MAINTENANCE OR YOU KNOW
GIVEN THAT YOU MOVE FROM SEEMS
LIKE YOU MOVE FROM.
EACH DIFFERENT METER.
THE YEAH WE DEFINITELY SEEN UP.
WITH THE DIESEL TO HYBRID WE
SOLVE.
REDUCTION IN IN THE FIELD ARE
USING SO WE'RE ABLE.
TO GET SOME MORE MILES PER
GALLON ON ON THAT WHEN WE MOVE
TO ELECTRIC BUSES WE ALSO SAW.
A SIGNIFICANT DECREASE IN THE
COST TO OPERATE --
THE BUS --
SO WE RECEIVED AYE BUT ABOUT A
ONE THIRD OF THE COST OF DIESEL --
HOWEVER THAT WAS ALSO GETS WILL
BE MORE COMPLICATED BECAUSE THAT
WAS VERY --
AT THAT PERIOD WHEN WE FIRST
STARTED A RUNNER BUT ELECTRIC
BUSES.
WE HAVE A TWO YEAR WAIVER FROM
THE UTILITY COMPANY. TO WAIVE
DEMAND CHARGES BECAUSE OUR BUSES
THEY DROPPED QUITE A BIT A POWER
AND I IN THE SHORT PERIOD OF
TIME BECAUSE OF THE FAST CHARGE
TYPE BUSES.
AND SO --
WHEN THAT EXPIRED --
THE THAT BASICALLY LEFT --
FOR US TO BEAR THE BURDEN OF
THOSE DEMAND CHARGES WHICH
ACTUALLY.
BECAUSE THAT THE COST TO BE
ABOVE WHAT WE'RE PAYING FOR THAT
ARE DIESEL BUSES HA SO WHAT'S
OUR TENT IT WAS REMOVED IT UP
COSTING MORE. TO TO RUN THE
FLEET YEAH.
YEAH.
SO -- I KNOW
THERE'S THERE'S THERE'S A BILL.
I THINK IT'S FOURTEEN THIRTY
FOUR THAT US --
THE UTILITY COMPANIES TO LOOK AT%
OF RATE STRUCTURE SPECIFICALLY
FOR THIS USE CAN TO PROMOTE THE
DEPLOYMENT OF THESE BUSES.
SEND WERE ALSO LOOKING INTO
BATTERY STORAGE AND OTHER THINGS
YOU NEED. TO AVOID THOSE COSTS
AS WELL I KNOW WE HAVE HEARD OF
SOME BUSES I KNOW.
I'M OUR OFFICE.
THAT SOME ELECTRIC BUSES HAD
TROUBLE.
NAVIGATING HILLS AND HAVING THE
YOU KNOW ONCE IRAQ PASSIVELY IT
GOING UP HILLS HAVE BEEN HAVE
YOU GUYS HAD ANY OF THOSE ISSUES
HAVE YOU EVER HEARD OF THOSE
ISSUES.
THIRD OF THOSE ISSUES BUT WE
HAVEN'T HAD THOSE THOSE ISSUES.
I THINK THOSE WERE DIFFERENT
TYPE OF BUSES AND ALSO --
OUR TERRAIN IS A LOT FLATTER
HAVE BEEN THE MOTHER TURNED ON
SO WE THAT WE HAVEN'T HAD.
THE SAME TYPES OF CHALLENGES
THAT METHODS WHICH YOU HEARD OF
THAT HAS AN INVITE BOTH YOU OUT
TO FORT OF ON MY DISTRICT TO
CHECK OUT THE HOME OF GREEN BOSS
AND WILL GET YOU BOTH SET OUT
[inaudible]
GREAT YEAH.
GOD PLEASE CONTINUE CLOSER.
SO -- THE
WE'VE WE'VE BEEN ABLE TO DEPLOY
THIS I'M.
YET STOCKTON IS IN THAT
DISCIPLINE YOU KNOW COLLECTION
OF DISADVANTAGED AREAS --
BOTH ECONOMICALLY
ENVIRONMENTALLY SO WE WE AND OUR
TV IT'S IMPORTANT FOR US.
TO MAINTAIN OUR INCREASED
SERVICE LEVELS.
AND ALSO DELIVERED THIS --
THAT THE QUEEN TECHNOLOGY TO OUR
CUSTOMERS WHO DEPEND ON AYE AYE
BUSES.
AND HELP THEM THE AIR POLLUTION
IN THE AREA.
AS WELL AS THE THAT GREENHOUSE
GAS EMISSIONS --
SO ONE OF OUR CHALLENGES WE WANT
TO DEPLOY THIS TECHNOLOGY BUT WE
DON'T WANT TO DO IT AT THE
EXPENSE OF OUR OUR PASSENGERS AS
FAR AS VOLUME OF SERVICE.
SO WE NEED TO DEPLOY THESE
TECHNOLOGIES IN A COST EFFECTIVE
WAY.
THAT DOESN'T.
THAT DOESN'T TAKE OPERATING
COSTS WHICH IS VERY PRECIOUS FOR
US.
MON TO RUN THESE THESE ROUTES
EVERY YEAR.
IT TO MAKE THIS TRANSITION SO
WE'VE BEEN ABLE TO TAP INTO.
DIFFERENT GRANTS THE DID TO DO
TO PLAY MISSILE DEPLOYMENTS OF
SOME VEHICLES WE'VE BEEN ABLE --
TO ALSO --
THAT RELY ON THAT THE H. FIT
PROGRAM.
TO REDUCE THE COST OF THE THE
THE VEHICLES THEMSELVES.
AND WE'RE LOOKING AT THE LCD SF
IS REALLY --
AS SUCH IT'S SOMETHING TO OFFSET
THE COST OF ELECTRICITY THAT.
THAT WE PURCHASE A YOU RUN THESE
FEARS OF THE INCENTIVES AREN'T
THERE ON THE ELECTRIC RATES FOR
THE ELECTRIC BUSES IN.
GIVEN THAT IT WOULD COST MORE
THAN WOULD YOU GUYS LOOK AT
USING LIKE REGULAR DIESEL OR
BIODIESEL GOING BACK TO THOSE
TYPES OF TECHNOLOGIES OR WHAT
WOULD.
WHAT DO YOU SEE YOU GUYS HAVE TO
SPEAK TO HIM YEAH SO WE WERE
HOPING THAT THERE'S A
COMBINATION OF?
YOU NO STABILIZATION IN THE
RATES AS FAR AS THE DEMAND
CHARGES ON ON CHARGING THESE
THESE VEHICLES THEMSELVES --
YOU KNOW COPING COST THE
VEHICLES GETS CONTINUE TO TO GO
DOWN -- AS
THEY HAVE --
THE H. FIT PROGRAM THAT OR THAT
SUPPLEMENTS THE COST ALSO HELPS --
AND WE ALSO EARN CREDITS FOR IT
THROUGH THE HEALTHY AT THAT
PROGRAM --
BECAUSE WERE WERE WERE MAKING
THESE ABOUT ESTIMATES BECAUSE
WHAT THE CREDIT YOU CAN OFFSET
THE COST BECAUSE YOU COULD SELL
[inaudible]
YES.
EXACTLY SO THAT'S THAT'S THAT'S
OUR IT BENEFIT DEFINITELY
BENEFITS US IN OUR WRITERS TO BE
ABLE TO AND TO MAKE THE
TRANSITION.
AND STILL MAINTAIN --
THE LEVEL OF SERVICE THAT WE'VE
BEEN PROVIDING AND HOPE.
TO GROW THAT AS THE ECONOMY IS
IMPROVING A LOT OF OUR FUNDING
RESOURCES ARE BASED ON TAX
DOLLARS PLEASE GOD YOU SAY YOU
GUYS WENT THAT DIRECTION AND
BECAUSE OF REGULATIONS FROM THE
STATE.
AND INCENTIVES THAT WE PROVIDED --
YES ABSOLUTELY YES SO OF THE
INCENTIVES AND REGULATIONS TURN
THE OTHER WAY.
DO YOU THINK MOST CITIES IN
THEIR CELLS WOULD CHANGE THE
OTHER DIRECTION --
I WOULD SAY BE A HARD DECISION
SOMETHING THAT WE LOOK AT HAVE.
TO LOOK OUT HARD AND GATHERED
ABOUT GET THE TICKET OFFICE
LAWYERS KNEW WHAT IS THE COST.
WELL HOW MANY YOU KNOW HOW MUCH
AVIANO JUST GIVE YOU THE FEATHER
MOST CITIES I THINK --
THAT ALL THE WRITING ON THE
WALLS OF THE STATE PUSHED IN ONE
DIRECTION AND MOVE THAT WAY AS
QUICKLY AS POSSIBLE.
IN AND BUDGET WHICH IS WHY YOU
GUYS ARE WHERE YOU'RE AT AND I
KNOW THAT'S WHY A LOT OF OUR OUR
CITIES ARE WHERE THEY ARE TO
YEAH DEFINITELY I MEAN WE'VE.
WE'VE ALWAYS BEEN ON THE
FOREFRONT BUT YOU KNOW.
YOU KNOW WE DEFINITELY SEEN THE
REGULATIONS COM AND YOU KNOW
IT'S AYE MODEL GOTTARDO DOWN THE
COST NOW DOESN'T IT YEAH.
APPRECIATE THAT ON A FEW
FINISHING JUST MONEY FEE OF
ADDITIONAL TESTIMONY --
SO WOULD I WOULD JUST THAT CLOSE
WITH THAT THE HEALTHIER --
I'LL SEE IF.
THAT'S PROGRAM BOTH ENCOURAGES
PARA TRANSIT AGENCIES TO MAKE.
MAKE THAT THE INVESTMENTS IN
THIS TECHNOLOGY AND IT ALSO
SUPPORTS THE INDUSTRY'S --
THAT SUPPLY THE VEHICLES THE
CHARGING INFRASTRUCTURES --
AND AT THE SAME TIME IT.
DOESN'T MAKE US MAKE A CHOICE
BETWEEN OPERATING DOLLARS IT'S
HARD TO INVEST THIS IN.
NEW INNOVATIVE TECHNOLOGIES OR
DO WE INVEST AND REINVEST THIS
INTO.-OUR DAY TO DAY OPERATIONS AND
SERVICE CALLER THANK YOU
[inaudible]
THANK YOU.
RIGHT LET ME ASK --
SIR -- HACK
INTO QUESTION.
S. BECAUSE YOU KNOW I'M EARLIER
PANEL WE HAD DISCUSSION ABOUT.
WHAT THE COST WAS OF THIS PER OF
LCF ASKS?
AND THOSE LITTLE BIT OF
DISCREPANCY BETWEEN SOME OF THE
PANELISTS IN TERMS OF THE COST
BUT FROM YOUR ANALYSIS AND IF
YOU GET ONE OF THE SLIDES ON IT.
ORDER THE MAJOR FACTORS THAT ARE
AFFECTING.
PRICING THAT YOU'RE SEEING IN
THE ACTUAL MARKET [inaudible]
POP THAT.
OKAY SO THIS.
COUPLE YEARS A HISTORY.
IN WHAT WE'RE OFFERING CCS A
MAJOR DIPS.
ALL ONE IN THE SUMMER OF SIXTEEN
AND THEN ANOTHER.
ONE LAKE WINNER THIS YEAR.
RIGHT SO THE SUMMER SIXTEEN WAS
WHEN.
THE RUMOR MILL HAD AT THE
GOVERNOR WAS GOING TO TRADE LCF
PASS FOR CAPTAIN TRADES.
FOR AND SO EVERYBODY WHO WAS HOW
HOLDEN ELSE IF S. CREDITS BAILED
OUT.
AND ON THE MARKET LOST HALF ITS
VALUE.
AND THEN.
EARLIER THIS YEAR.
THERE WERE THERE WAS --
A LOT OF CONCERN IN THE
MARKETPLACE ABOUT THE IMPACT OF
CARBS PROPOSED [inaudible]
CHANGE. TO THE THE CHANGE TO
TWENTY THIRTY SEVEN OF THEM
MARKET TOOK A BIG.
DEPP AT THAT POINT AS WELL SO --
WHAT YOU SEE IS THAT --
CERTAINLY TO THE DOWNSIDE THIS
MARKET IS DRIVEN BY SENTIMENT.
YOU KNOW OR FEAR RED MARK
MARKETS ARE LIKE THAT --
AND THEN THAT THE BIG INCREASE
THAT YOU'VE SEEN REALLY STARTING
FROM.
SEVENTEEN YOU COULD YOU COULD
OBSERVE WITH WHAT'S GOING ON
WITH CREDIT BANK CREDIT BANK
WOULD BUILD A CREDIT BANK SLOWED
IN SIXTEEN AND STOPPED IN.
SEVENTEEN AND NOW HERE WE ARE
NAY TO THIS DON'T CORLEY BASIS
THAT'S GOING TO BE --
PROLLY SOON THE THAT THE NEXT
QUARTER.
STUFF WILL BE OUT FIRST QUARTER
BE OUT WILL GET AN IDEA WHAT'S
GOING ON THE BUT WHO THINK THAT
THAT.
PRETTY [inaudible]
RAPID.
CLIMB THERE IS SOME MARKET
TRYING TO GET POSITION SO THAT
THEY PEOPLE WHO ARE CREATING THE
DEFICITS WILL HAVE CREDITS.
NOR DID MEET THEIR OBLIGATION ON
FORWARD.
CUT SO DO YOU SEE PEOPLE NOW
RUSHING BACK TO BUY THOSE
CREDITS SO THAT'S WHY WE'RE
SEEING AN INCREASE BECAUSE WORD.
THEN TO SPEAK PEOPLE.
NEEDING THEM IS THAT WERE YES
HAVE STARTED WE WERE SERIOUS
STRENUOUSLY NOW TO SAY THAT
WOULD BE WOULD GO TO THE CREDIT
BALANCE.
THING HERE.
WHERE YOU SEE THE FOURTH QUARTER
OF SEVENTEEN HAD US SLIGHT DRAW --
I THINK OUR EXPECTATION FOR
CREDIT BALANCE DRAWS BY QUARTER
FOR EIGHTEEN HAS.
ON THE ORDER OF SEVEN HUNDRED
FIFTY THOUSAND CREDITS
[inaudible]
A QUARTER [inaudible]
WHICH IS --
YOU KNOW.
PRETTY GOOD HUNK OF THOSE STEPS
THAT YOU SEE THERE.
YOU KNOW CERTAINLY BIGGER THAN.
MAYBE ABOUT THE SIZE OF THE DRAW
THAT YOU SEE THE FIRST QUARTER
OF SEVENTEEN WHAT DOES THIS MEAN
FOR CONSUMERS ARE AWARE OF THE
CONSUMER IMPACTS OF THIS.
WOULD MEAN FOR CONSUMERS SAYS
THAT -- IN
IS THAT THE PRICES WILL CONTINUE
TO GO OFF.
WHAT WE'VE ILLUSTRATED HERE
[inaudible]
FOR EIGHTEEN IS --
AVERAGES NINE POINT SEVEN CENTS
PER GALLON THAT'S ON SLIDE
[inaudible]
TWELVE BUT INDEED.
FRIDAY'S PRICE LAST FRIDAY'S
PRICE IN CENTS PER GALLON WAS
MORE LIKE THIRTEEN CENTS PER
GALLON.
AND AND IF SO --
IF THE MARKET AND WE DON'T AND
WE DON'T THINK THAT THE MARKET
WILL GET TO THEIR CREDIT
CLEARING PRICE --
THIS YEAR ALONE THAT THERE'S A
CHANCE OF THAT --
BUT IF THAT HAPPENS THEN THE
NUMBERS GOING TO BE SOMEWHERE
AROUND EIGHTEEN TO TWENTY CENTS
A GALLON.
WILL SHOW UP IN YOU KNOW AT THE
PUMP.
SO ANA BUT IMAGINE EVERYBODY'S
ANTICIPATING AIR VIS REGULATIONS
SEE WHAT THAT'S ACTUALLY MEAN
FOR EVERYONE RIGHT.
WELL -- BUT
BUT THEY NEED TO MAKE THEY NEED
TO MAKE A CHANGE THE REGULATION
THEY NEED JUST.
TO TO SMOOTH OUT THIS.
CATHOLIC TALKED ABOUT IT BEING
BACK AND LET IT.
WELL WHAT HAPPENED WAS THERE'S
NOT ENOUGH LEARN ENOUGH CREDITS
OUT THERE. TO HIT 10%.
BY.
TWENTY TWENTY AND I HAVEN'T.
AND YOU KNOW IT'S THIS BEEN
ASPIRATIONAL ALL ALONG HAVEN'T
BEEN THAT MANY CREDITS OUT THERE.
AND SO BY SMOOTHING THAT THE
PROGRAM OUT SEVEN HALF
[inaudible]
WE THINK THAT THE BANK WILL
STILL THE SOLID BY THE TIME WE
GET TO THE OTHER. TWENTY TWENTY
NINE BUT BUT NOT MUCH AND SO
THAT'S WHY WE'VE BEEN SAYING
THAT KIND OF ALL LONG.
WE HAVE BEEN.
A LOT MORE CREDITS ABOUT TO BE
GENERATED THIS PROGRAM OR TO
KEEP IT SOLVENT [inaudible]
GOING FORWARD [inaudible]
GOT IT.
OKAY MASK THERE'S ADDITIONAL
QUESTIONS [inaudible]
NOW.
APPRECIATE PRESENTATION I KNOW.
WHERE THAT RELY ON THIS
INFORMATION AS WE CONTINUE TO
MOVE FORWARD BUT APPRECIATE HOW
YOU ACTUALLY CRAFTED ALL OUT
OVER THE YEARS OF THE QUARTERS?
RIGHT AS RAIN REPORTS OF THANK
YOU AND I JUST THINK THAT IF
PLEASE WORK WITH THE LA ON THE
S. AND AND GET THAT OKAY.
DATA AND AND RELATE THAT BACK TO
OUR OFFICES AS WE GO FORWARD GOT
HAPPY TO DO THAT THANK.
ALRIGHT THANK YOU SO WITH THAT
WE'RE GONNA GO I'D MOVE ON TO
PUBLIC COMMENTS.
AND THEN WE WILL CONCLUDE
[inaudible]
A PLACE.
YOU STATE YOUR NAME AND WE ARE
ASSOCIATED WITH FOR THE RECORD
THAT BE APPRECIATED.
THANKS VERY MUCH CHAIR SALAS AND
MEMBERS OF THE SUBCOMMITTEE
MANAGE GRAHAM NOISE I'M A FUEL
REGULATORY ATTORNEY IN TOWN AND
ALSO A LEAD UP THE LOW CARBON
FUELS COALITION.
ARE START BY SAYING I'M A STRONG
SUPPORTER LOW CARBON FUEL
STANDARD --
IT'S REGARDED BY MANY AS THE
BEST --
DESIGN PROGRAM IN THE WORLD --
FOR DIVERSIFYING THE
TRANSPORTATION FUEL MIX --
AND I JUST WANT TO PICK UP ON
SOME OF THE POINTS THAT WERE
REPEATEDLY DISCUSSED YEAR I
APPRECIATE THAT EVERYONE'S HERE
PAST FIVE O'CLOCK ALREADY SO
ONCE A ONE HIT THINGS FAST BUT
GLAD TO BE RESOURCE GOING
FORWARD --
TO UP TO THIS SUBCOMMITTEE --
A FIRST OF ALL IN TERMS OF WHAT
THIS.
DON'T DO AS IT FOCUSES IN ON THE
TOUGHEST SECTOR THE
TRANSPORTATION SECTOR WHICH HAS
40% OF THE GREENHOUSE GAS --
EMISSIONS IN CALIFORNIA OTHER
SECTORS DON'T DIRECTLY ADDRESS
THAT SECTOR'S SO THE GREENHOUSE
GAS EMISSION REDUCTIONS ARE
GONNA NATURALLY GO TO THE EASIER
PLACES SO TO SPEAK --
WE'RE NEVER GOING TO ADDRESS --
TRANSPORTATION IF THAT CONTINUES
TO HAPPEN OUT WERE ALSO NEVER
GOING TO ACHIEVE A FUEL
DIVERSIFICATION.
I AND WE ARE --
REMAIN A STATE IN THE COUNTRY
THAT'S HIGHLY DEPENDED ON
PETROLEUM PRODUCTS --
AND WITH THEM ARE ALSO THE
CRITERIA POLLUTANT EMISSIONS AS
WELL AS THE GREENHOUSE GAS.
EMISSIONS THAT GO WITH THEM ARE
WE SEEING THIS PROGRAM REDUCE --
OVER THIRTY THREE MILLION METRIC
TONS A OF POLLUTANTS TO DATE
IT'S ALSO RELIEVING PRESSURE
FROM THE CAP AND TRADE PROGRAM --
WITH THOSE --
GREENHOUSE GAS REDUCTIONS --
AND THEREBY SAVING COSTS.
OBVIOUSLY COST WAS A HUGE FACTOR
THAT EVERYONE TALKED ABOUT OVER
AND OVER AGAIN IN THIS
DISCUSSION --
FRANKLY I THINK WITH WITH DUE
RESPECT TO ALL I THINK THE THE
THE COST ANALYSIS --
WAS A LITTLE BIT SIMPLISTIC AND
ARE ALL OF THE COST OF THE L.
CFS AND IMPUTED IT TO THE GALLON
SO IT SAID IF THE L. CFS COSTS
IS A HUNDRED DOLLARS A METRIC
TON.
WILL FIGURE OUT WHATTHAT COSTS
A COT ACROSS THE A GALLON OF
GASOLINE --
DIDN'T THINK ABOUT THE FACT --
THAT CALIFORNIA IS A VERY --
LEAN OUR MARKET INTERNS ARE
GASOLINE SUPPLY IN PARTICULAR --
THOSE THAT HAVE FOLLOWED WHAT'S
GOING ON IN THE C. C. IN TERMS
OF THE MASSIVE PRICE SPIKES
WE'VE SEEN IN GASOLINE ON KNOW
THAT THOSE RESULT FROM JUST.
SMALL REFINERY REDUCTION SO I
THINK WE REALLY OUGHT TO BE --
THINKING ABOUT THE MARGINAL COST
OF GASOLINE.
ALSO THE POINTS --
THAT NEIL AND JOE BROUGHT UP --
ABOUT ETHANOL AND BIODIESEL BOTH
BEING COST SAVERS --
AND THE FACT THAT OFTENTIMES
DEAL CFS CREDIT IS NOT JUST
GOING -- TO
THE LOW CARBON FUEL IT'S ALSO
OFTEN BEING SHARED --
BY THE PETROLEUM DISTRIBUTOR ON
THAT SIDE OF SO I THINK THAT
COST ANALYSIS --
IS SHOULD BE LOOKED AT IN A LOT
MORE DEPTH ON THE OTHER THING I
REALLY WANT TO FOCUS IN ON IS
THAT WE SHOULD FOCUS ON THE
EXPERIENCE TO DATE.
IN THE PROGRAM --
WITH THE DE UP THE SLIDES
PRESENTED HERE ON PAGE TWELVE
THE COST PER GALLON --
EVEN WITH THAT SIMPLISTIC
APPROACH FOR TWENTY SEVENTEEN
WAS FOUR POINT SIX CENTS PER
GALLON THAT'S ONLY ABOUT A THIRD
OF WHAT WE'RE TALKING ABOUT FOR
CAP AND TRADE PRICES OVER THE
RACK.
IT IS ABSOLUTELY NO COST BECAUSE
FOR ALARM --
WE'VE SEEN THESE KINDS OF
CONCERNS ABOUT WHAT'S ABOUT TO
HAPPEN IN THIS PROGRAM NOW SINCE
IT STARTED SEVEN YEARS AGO --
AND SO I WOULD SAY LOOK AT THE
HISTORY WE HAVE LOOK ALSO AT
WHAT CARD IS DOING TO ADJUST
DOWN THESE ARE SHORT YEARS HERE.
BECAUSE OF CONCERNS BECAUSE THEY
ARE VERY AWARE OF COST CONCERNS
AS WELL UP SO I THINK YOU FOR
YOUR TIME I DO REALLY APPRECIATE
ALSO THE INTEREST IN.
A DRIVING IN STATE PRODUCTION --
DOZER AS AS WAS DISCUSSED THOSE
ARE SECRET PROBLEMS IN
PERMITTING PROBLEMS IN NIMBY
PROBLEMS THAT WE HAVE IN
CALIFORNIA THAT REALLY NEED TO
BE ADDRESSED TO KEEP MORE THESE
DOLLARS IN CALIFORNIA THANK YOU.
THANK YOU.
GOOD EVENING JULIA LEVIN WITH A
BIO ENERGY ASSOCIATION OF
CALIFORNIA WE REPRESENT MORE
THAN SEVENTY PUBLIC AGENCIES.
LOCAL GOVERNMENTS AND PRIVATE
COMPANIES IN CALIFORNIA THAT ARE
CONVERTING ORGANIC WASTE TO
ENERGY.
AND WE STRONGLY SUPPORT THE LOW
CARBON FUEL STANDARD WE BELIEVE
THAT IS PROVIDING A LOT OF
BENEFITS TO CALIFORNIA INCLUDING
A LOT OF IN STATE INVESTMENT.
OF ALL BILLIONS OF DOLLARS OF
SAVINGS AND HEALTH RELATED --
AT THE AIR POLLUTION RELATED
HEALTH COSTS IT'S HEDERA.
HAVING SAID THAT THERE ARE TWO
MAJOR PROBLEMS WITH THE PROGRAM
WHICH ACTUALLY HAVE COME OUT IN
A NUMBER OF THE COMMENTS IN
PRESENTATIONS TODAY. ONE IS THE
IMPORTANCE OF KEEPING THE FOCUS
IN STATE AND TERRACE HOUSE I
REALLY APPRECIATE YOUR COMMENTS
ABOUT THAT BECAUSE WE'RE GOING
TO TALK ABOUT COSTS AND BENEFITS.
THEY'RE VERY FEW BENEFITS TO
SUBSIDIZING OUT OF STATE FUELS
PRODUCTION AND AND NO BENEFITS
AT THOSE FUELS DON'T ACTUALLY
MAKE IT. TO CALIFORNIA WHICH
HAPPENS WITH A LOT OF THE BIO
MAT THING THAT WE'RE SUBSIDIZING.
ITS LANDFILL GAS FROM TEXAS OR
OHIO OR OTHER STATES THAT NEVER
ACTUALLY IS EVEN DELIVER TO
CALIFORNIA.
YOU ALL KNOW FROM YOUR DISTRICTS.
I'M TERRACE SALAS ASSEMBLYMAN
MATHIS YOU HAVE A WEALTH OF
DAIRY FOREST AND AGRICULTURAL
WASTE THAT WE SHOULD BE
CONVERTED TO ENERGY INSTEAD OF
LAND FILLING IT OR BURNING THAT.
OR LETTING IT GO UP IN A
CATASTROPHIC WILDFIRE
ASSEMBLYMAN GIBSON HAS TOURED
ONE OF MY MEMBERS FACILITIES THE
LOS ANGELES COUNTY SANITATION
DISTRICTS.
WHERE THEY'RE NOT ONLY
CONVERTING WASTE WATER BY A GAS
TO ENERGY BUT TAKING IN FOOD
WASTE THAT WOULD OTHERWISE GO TO
A LANDFILL?
THESE FACILITIES PROVIDED A LOT
OF PUBLIC SAFETY BENEFITS THEY
CAN ALSO PROVIDE JOBS AND A LOT
OF ECONOMIC DEVELOPMENT.
AS THE FACILITY AT LOS ANGELES
COUNTY SANITATION DISTRICT US IN
ALL OF YOUR COMMUNITIES AND
TREES AROUND THE STATE THAT
REALLY NEED MORE JOBS.
WE DON'T GET THOSE BENEFITS WHEN
THE FUELS ARE PRODUCED OUT OF
STATE AND WE GET NO BENEFITS IF
THEY'RE NOT DELIVER TO
CALIFORNIA SO.
I DO ENCOURAGE THE LEGISLATURE
TO LOOK AT HOW. TO FOCUS THE
LTFS PROGRAM MORE ON FUELS THAT
ARE PRODUCED AND USED TO
CALIFORNIA BECAUSE THAT'S REALLY
WHERE WE MAXIMIZE THE BENEFITS
AND THEN THE COST BENEFIT.
EQUATION CHANGES SUBSTANTIALLY
THE OTHER REALLY CRITICAL ISSUE
IS UNTIL RECENTLY I THINK ONE OF
THE STRENGTHS OF THE LC OF US
PROGRAM WAS ITS FUEL NEUTRALITY
THAT WAS ENTIRELY BASED.
ON A LIFE CYCLE ANALYSIS OF THE
CARBON INTENSITY THE AIRBOARD IS
QUICKLY MOVING AWAY FROM FUEL
NEUTRALITY AND SOME OF THE
PROPOSED CHANGES THAT THE ALEJO
HIGHLIGHTED.
EMPHASIZE THAT IN THEIR
ADDITIONAL CHANGES AS WELL.
THAT WOULD REALLY BENEFIT
ELECTRIC VEHICLES.
A AND HURT BIOFUELS WHICH AS
SEVERAL BECAUSE OF THAT OUR THE
LION'S SHARE OF ELSE IF US
PROGRAM.
ARE AND ALSO HELP TO KEEP THE
COST DOWN ELECTRIC VEHICLES ARE
SIGNIFICANTLY MORE EXPENSIVE.
IN TERMS OF THE POUND OF CARBON
REDUCTION OR A POUND OF AIR
POLLUTION REDUCTION.
SO THE PROGRAM NEEDS TO REMAINED
FUEL NEUTRAL AND FOCUSED ON A
DIVERSITY OF FUELS TO MAXIMIZE
THE BENEFITS AND MINIMIZE THE
COST.
THANK YOU VERY MUCH THANK YOU
APPRECIATE THAT OF THOSE
COMMENTS AND IF WE LOOK INTO
SOME OF THOSE THINGS ON THAT
NOTE JUNE ON ASKING ALL THE HAVE
TO CALIFORNIA ELECTRIC
TRANSPORTATION COALITION --
JUST WANT TO SAY THAT KELLY DC
IS A LONGTIME SUPPORTER OF THE
LC A FAST AND I'M NOT GOING TO
GO INTO ALL THE BENEFITS IF
YOU'VE ALREADY HEARD FROM
EVERYBODY ELSE BOTH ECONOMIC AND
JOBS AND ENVIRONMENTAL BY DO YOU
JUST WANNA MAKE A PLUG.
FOR A ELECTRIFICATION OF OUR
TRANS AFTER ELECTRICITY IS A
VERY CLEAN TRANSPORTATION FUEL
REDUCING CLIMATE CHANGE
POLLUTANTS BY 75%.
AND TOXIC AIR POLLUTANTS BY OVER
90%.
ELECTRICITY GETS CLEANER
OVERTIME AS A RESULT OF THE
STATE'S RENEWABLE ENERGY GOALS --
SO --
ELECTRIC VEHICLES ACTUALLY ARE
GETTING CLEANER AS THEY AGE.
A AND KELLY PCS COMPLETED A
NUMBER OF STUDIES THAT ARE
AVAILABLE ON OUR WEBSITE
INDICATING THAT ELECTRICITY GRID
CAN --
HANDLE AND ACCOMMODATE THIS
TRANSITION TO ELECTRIFICATION
AND IN FACT ELECTRIFICATION IS
LIKELY TO BENEFIT THE GRANT AND
ALL ACTRESS CITY USERS
REGARDLESS OF WHETHER NOT THEY
DRIVE ANY BE.
UP THANK YOU FOR THE OPPORTUNIST
BEACON THANK YOU FOR HAVING THIS
HEARING APPRECIATE.
HI THERE MARY SELECCIONES AJW WE
REPRESENT AND MANY DIFFERENT
ALTERNATIVE FUEL PROVIDERS.
AND JUST A FEW COMMENTS --
THE FIRST OF ABOUT THE%
ALTERNATIVES THAT ARE AVAILABLE
IN THE MARKETPLACE NOW AS A
RESULT OF THE L. CFS.
BECAUSE OF THE LTFS THERE ARE
NOW ALTERNATIVES IF YOU DON'T
LIKE THE PRICE OF GASOLINE THEY
YOU SEE AT THE PUMP. TO DAY YOU
HAVE CHOICES WHEN WE SOON
STARTED THE LCF US PROGRAM TEN
YEARS AGO I WAS A LITTLE BIT
MORE OF A DREAM AND NAY BEING
NOT COST EFFECTIVE FOR A LOT OF
FOLKS NOW YOU'RE SEEING.
NATURAL GAS ELECTRIC VEHICLES
USE EVEN SEEN HYDROGEN THERE'S
SO MANY DIFFERENT THERE THERE'S
FLEX FUEL VEHICLES THERE ARE SO
MANY DIFFERENT TYPES OF VEHICLES
NOW THAT ARE AVAILABLE.
AS A RESULT OF THIS PROGRAM AND
THAT IS REALLY WHAT WE'RE TRYING
TO GET TO IS CHOICE ALTERNATIVES.
AND SO WHEN I LOOK AT THAT FOR
SINCE IT'S AT THE TOP OF THE ON
ON TOP OF THE PRICE OF GASOLINE
TODAY.
YEAH THERE IS A LITTLE BIT OF
COST BUT WHAT WE'RE REALLY
TRYING TO DO IS ADDRESS THAT
UNDERLYING THREE TO FIVE DOLLARS
THAT SWINGS THAT WE HAVE NO
CONTROL OVER.
BY USING SOME DOMESTIC SOURCES
OF FUELS AND THAT'S WHAT THE THE
BOTTOM LINE OF WHAT WE'RE TRYING
TO DO WITH THE PROGRAM AND BY A
LOT OF THE METRICS THAT WE'VE
SEEN HERE TODAY WE'VE BEEN
SUCCESSFUL AT THE OTHER MAJOR
THING THAT I'D LIKE TO HEAD ON
IS ABOUT.
THE DUPLICATION QUESTIONS THAT
YOU HAD AND THE EARLIER ON THE
EARLIER PANELS [inaudible]
AND WE DID A A STUDY WITH
TELSTAR ACTUALLY.
I'M SORRY WITH AYE CALLIE T. SEE --
A FEW YEARS AGO THAT LOOK AT
WHAT HAPPENS TO THE PRICE OF CAP
AND TRADE ABSENT THE OCI PASS.
AND IT ESSENTIALLY SPIKES
BECAUSE IF YOU'RE NOT GETTING
THAT THAT SIGNIFICANT DRAWDOWN
OF PA CARBON INTENSITY THROUGH
THE LCF US THEN.
IT GOES TO THIS ECONOMY WIDE
PROGRAM CAPTAIN TRAITS GOING TO
BECOME MUCH MORE EXPENSIVE
ECONOMY WIDE.
BUT THAT THAT IS AVAILABLE ON
THE CALLIE T. C. WEBSITES I
ENCOURAGE YOU TO LOOK AT THAT.
AND IN TERMS OF AND WHEN YOU'RE
TALKING TO YOUR CONSTITUENTS
BACK HOME AND THEY'RE ASKING
ABOUT WHY ARE WE DOING THIS
PROGRAM TWICE.
THEN I ALWAYS LIKE TO LOOK AT
THIS AS AN ANALOGY OR A AND I I
LIKE TO COMPARE THIS TO THEIR
NOBLE PORTFOLIO STANDARD THIS IS
THERE AN OVAL PORTFOLIO STANDARD
FOR THE FUEL SECTOR FOR OUR
TRANSPORTATION SECTOR.
WE'RE TRYING TO DIVERSE OF MAURY
NOBLE CONTENT AND SIEU THAT
PORTION OF OUR ENERGY MIX THIS
IS BEATS BUT SET UP CUSTOM
TAILORED PORTION OF THE MARKET.
PROGRAM THAT WE NEED TO DRAW
DOWN THE THAT CARBON BECAUSE IT.
THANK YOU THANK YOU.
AYE AYE GOOD AFTERNOON I'M A
RYAN KENNY WITH CLEAN ENERGY.
WE ARE A AYE CALIFORNIA SUCCESS
STORY BECAUSE OF IN PART BECAUSE
THE L. CFS WERE BASED IN NEWPORT
BEACH WE HAVE HUTCHEON SIXTY
FIVE AYE STATIONS ALONG HERE IN
CALIFORNIA.
ALL PROVIDE RENEWABLE NATURAL
GAS OR OR BY METHANE --
THAT'S ONLY BECAUSE OF THE LCF
BASS IN THE RAIN CREDITS MEGAN
IT MADE POSSIBLE TO COMPETE
EFFECTIVELY WITH DIESEL FUEL.
AND OF COURSE THAT ALLOWS US TO
BE PART THE BUSINESS COMMUNITY
THAT'S A SUCCESS STORY.
AND ALLOWING US --
TO REMOVED THIRTY DIESEL FROM
HIGHWAYS AND I REPLACE IT WITH
CLEAN --
FILE FEELS AND HOW WE DO --
EMPHASIZE THAT THE PROGRAM
SHOULD REMAIN I FEEL NEUTRAL AND
YOU KNOW THERE'S BEEN SOME --
EFFORTS TO PICK WINNERS AND
LOSERS RECENTLY WITH DIFFERENT
PROGRAMS THE LEGISLATURE I AB
ONE EIGHTEEN BEING ONE OF THEM --
BY THE ADMINISTRATION AND WE
URGE STILL THE LEGISLATURE TO
PLEASE I MAKE SURE THAT.
THE POLICIES ARE FUELING
TECHNOLOGY NEUTRAL AYE THERE IS
ROOM FOR ALL THE TECHNOLOGIES
AND IS ALSO ROOM FOR A SHORT
TERM AND LONG TERM STRATEGY.
AYE WE CAN'T REMOVE THREE DIESEL --
THROUGH --
LOW CARBON FEELS TODAY INCLUDING
EVERYONE AFTER GAS SO THANK YOU.
GOOD EVENING WILL BARRETT WITH
THE AMERICAN LUNG ASSOCIATION
CALIFORNIA ARE ORGANIZATIONS
BEEN A STRONG SUPPORTER OF THE
L. CFS.
I GOING BACK TO ITS ORIGINS AS
WELL AS OF THE EXPANSION OF THE
PROGRAM.
IN OREGON AS THEY'VE ADOPTED A
SIMILAR --
WE DO THIS BECAUSE THE
TRANSPORTATION SECTOR IS THE
LEADING SOURCE OF CLIMATE
POLLUTION AND AIR POLLUTION THAT
HARMS PUBLIC HEALTH IN
CALIFORNIA --
THE CHALLENGE VERY POLLUTION ARE
WELL KNOWN INCREASED ASTHMA
ATTACKS CHILDHOOD LONG
DEVELOPMENT PROBLEMS LUNG CANCER
HEART ATTACKS IN PREMATURE
DEATHS --
SOME OF THE RESEARCH THAT THE
AMERICAN LUNG ASSOCIATION IS
DONE SHOWS THAT.
THE IMPLEMENTATION OF A LOW
CARBON FUEL STANDARD IS A
CRITICAL TOOL IN REDUCING THE
HARM.
CAUSED BY OF FOSSIL FUEL USE IN
THE TRANSPORTATION SECTOR.
ARE TWO THOUSAND FOURTEEN REPORT
ON THE ARTIFACTS FOUND THAT --
WE COULD AVOID IT BILLION
DOLLARS IN CLIMATE RELATED --
CHALLENGES EIGHT BILLION DOLLARS
ROUGHLY AND THEIR POLLUTION
RELATED HEALTH IMPACTS BY TWENTY
TWENTY FIVE INCLUDING TENS OF
THOUSANDS OF VOTED ASTHMA TAXING
CALIFORNIA.
OVER SEVENTY FIVE THOUSAND
AFFORDED LOST WORK DAYS IN
CALIFORNIA BECAUSE OF CLEANER
AIR.
AS A RESULT OF THIS SHOW
DEFERRED DIVERSIFICATION.
PROCESS THROUGH THE LC FS SO
ISN'T PROGRAM MOVES FORWARD WE
WE LOOK FORWARD TO INCREASE
SUCCESS WE LOOK FORWARD TO THE
AIR BE --
ADDRESSING SOME OF THE
CHALLENGES AND AND MOVING THE
PROGRAM FORWARD WITH A STRONGER
TARGET.
FOR TWENTY THIRTY REALLY MAKING
SURE THAT THAT PATH TOWARDS
ELECTRIFICATION THAT WE BELIEVE
WE NEED TO MEET OUR CLEANER
CLIMATE GOALS ACHIEVED.
AND THAT --
THESE HEALTH BENEFITS CONTINUE
TIME SO AS A WHOLE --
AS A CONCLUSION THE PUBLIC
HEALTH COMMUNITY CALIFORNIA HAS
COME OUT STRONGLY IN SUPPORT OF
THE LOW CARBON FUEL STANDARD THE
SUCCESSES OF THE PROGRAM.
AND WILL CONTINUE TO SUPPORT
THIS IS A CRITICAL CLEANER
POLICY GOING FORWARDS AND THANK
YOU VERY MUCH FOR HOLDING HER
TODAY [inaudible]
THANK YOU.
THANK YOU MISTER CHAIRMAN IS A
COMMITTEES STEAM WITNESSES I'M
DAVID WEISKOPF FROM THE NEXT GEN
AMERICA --
IN ADDITION --
TO RESTATING OUR STRONG SUPPORT
FOR THE LOW CARBON FUEL STANDARD --
AND CALIFORNIA'S CLIMATE
POLICIES IN GENERAL.
I'D LIKE TO JUST MAKE A COMMENT
ON WHEN MATTER IS BANNISTER
HACKETT --
WHICH IS THE NEED --
FOR INCREASED AVAILABILITY OF
LOW CARBON FUELS IN ORDER TO
HELP -- THIS
MARKET CONTINUE TO GROW AND TO
CONTINUE TO KEEP PRICES LOW AND
MANAGEABLE AT THE PUMP.
A NEXTGEN ALONG WITH OUR
FRIENDS AT SERIES IN THE UNION
OF CONCERNED SCIENTISTS ARM.
I'VE RECENTLY COSPONSORED A
STUDY THERE WAS CARRIED OUT BY
DR CHRIS MAYLANDS OF US RELIGION
WHOSE --
NUMBER OF THE ARE NATIONAL
COUNCIL ON CLEAN TRANSPORTATION
AND THE LOW CARBON FUEL CENTER
VICE RE COMMITTEE.
OF THIS STUDY FOUND THAT ON THE
TWENTY THIRTY TIME FRAME.
THE 20% TARGET IS ACTUALLY QUITE
CONSERVATIVE --
SIGNIFICANTLY MORE FUELS OF WELL
ABOVE THAT 20% THRESHOLD.
I WILL BE AVAILABLE AT VERY --
REASONABLE PRICE.
CONSERVATIVE ESTIMATES ON THE
AVAILABLE TECHNOLOGY HAPPY TO
SHARE THAT WITH YOU MEMBERS --
MEMBERS OF THE COMMITTEE OR
OTHERS IF YOU HAVE QUESTIONS.
PLEASE DROP THAT OFTEN WILL MAKE
SURE GETS TEACHER THE MEMBERS
GREAT THANK YOU.
I THINK IT AFTERNOON THINK ABOUT
OPPORTUNITY TO SPEAK MY NAME IS
JOY A LAFIA AND I'M WITH THE
WESTERN PROPANE GAS ASSOCIATION.
AND MY COMMENTS MIGHT BE A
LITTLE BIT UNIQUE SO BEAR WITH
ME.
I'D LIKE TO ADDRESS AN AREA AND
ELSIE OF US THAT SHOULD BE
POTENTIALLY REEVALUATED.
AND AS YOU MAY KNOW THE LC A
FAST COVERS BOTH TRANSPORTATION
AND COMMERCIAL FORKLIFTS.
AND WHEN YOU'RE LOOKING
SPECIFICALLY AT INDOOR FORKLIFTS
THEY DO NOT RUN ON AYE EITHER
GASOLINE OR DIESEL.
SO THE PURPOSE OF LCF* TO
DISPLACE THIRTY GAS WINTERS.
DIESEL WITH THEM ALTERNATIVE
FUELS WITH THIS IS ALREADY
HAPPENING FOR INDOOR FORKLIFTS
THOUGH WE ASK THAT YOU TAKE A
LOOK AT THAT AND MY
RECOMMENDATION IS TO PERHAPS
SEGMENT.
OUTDOOR FORKLIFTS VERSUS INDOOR
FORKLIFTS AND EXTRACT INDOOR
FORKLIFTS TO ME I'LL SEE A FAST.
AND I ALSO ECHO THE STATEMENTS
AND BEING --
FUEL TECHNOLOGY NEUTRAL THANK
YOU.
THANK YOU APPRECIATE THAT.
NATIONAL PUBLIC COMMENTS.
HEARING AND SEEING THAT ALTER
BACK TO MEMBERS OF THE DIETS
[inaudible]
FOR CONCLUDING REMARKS --
THE FAT I'LL BEGIN I JUST SAY
YOU KNOW I JUST WANNA THANK ALL
STAKEHOLDERS OF PEOPLE STICKING
IT OUT A LITTLE BIT PAST. FIVE
ONE LITTLE BIT LONGER BUT I
THINK IT WAS DISCUSSION THAT WAS
MUCH NEEDED AT THE DISCUSSION.
IT'S A LITTLE WONKY.
RIGHT LITTLE BIT IN THE WEEDS
BUT IT'S SOMETHING THAT WE NEED
TO TALK ABOUT TO RESPONSIBLY AND
MOVE FORWARD ON CALIFORNIA'S
ENERGY FUTURE OR WE'RE GOING TO
GO.
THINK WE HAVE A LOT OF GOOD
QUESTIONS.
THAT WERE ASKED AND ANSWERED.
I KNOW WHICH LET US MORE
QUESTIONS.
AND POSSIBLY ANOTHER HEARING
DEPENDING ON WHAT THE
ADMINISTRATION DECIDES TO DO AS
THEY CONTINUE TO MOVE FORWARD --
WITH THEIR POLICIES AND WHAT
THAT ULTIMATELY MEANS FOR STATE
OF CALIFORNIA'S.
I ENERGY FUTURE ALSO WHAT THAT
MEANS TO CONSUMERS AND OUR
CONSTITUENTS BACK HOME BECAUSE
THAT'S WHERE WE WE TYPICALLY
HEAR IT AS WELL --
WATER THE EFFICIENCIES WHAT ARE
THE COSTS HOW DO WE CONTINUE TO
LOOK AT THIS AND YOU KNOW WE
MASS HELIO TODAY DELVE A LITTLE
BIT FURTHER INTO IT AND POSSIBLY
BRING IN THEIR BE --
AFTER THEY DEVELOP THE
REGULATIONS KINDA DISCUSS ABOUT
WHY THEY WENT ABOUT THE WAY THEY
WENT ABOUT IT [inaudible]
AND PAGE ONE THINK AIR EVERYBODY
FOR COMING OUT TODAY AND STAY
TUNED. FOR FOR THE NEXT
[inaudible]
ONE ADDITIONAL COMMENTS THANKS
VERY MUCH --
CERTAINLY HAS BEEN INFORMATIVE
FOR ME AND I DO APOLOGIZE --
OUR DEMANDS --
ARE RIGHT A LOT ANA SPIRIT RUN.
TO AND FRO THE NUMBER OF
COMMITTEES BUT THE INFORMATION I
HAVE IN FACT RECEIVED ON HIS
VERY ENLIGHTENING I THINK THE
CONVERSATION NEEDS.
TO GO A LITTLE FURTHER CERTAINLY
RECOMMEND ANOTHER SUCH HEARING --
BY BRINGING SOME OTHER
STAKEHOLDERS TO THE TABLE AND IT
WAS A BUSY DAY SOME OF OUR
COLLEAGUES WANTED TO COME BUT
THEY WERE POORLY MANY DIRECTIONS
I WANT TO THANK CHAIRMAN. ONE
HIS LEADERSHIP AND ALSO AS
VISION OMINOUS PARTICOLARE
BECAUSE I BELIEVE THAT IS THE
CONVERSATION THESE TAKE PLACE
NOW THINGS ARE IMPORTANT
CONVERSATION.
LOOKING AT THE NUMBERS LOOKING
AT WHAT FACE I'M CALIFORNIA --
WE NEED TO COME TOGETHER AND I
THINK WE CAN ALL COEXIST BY
WORKING TOGETHER AND WORKING OUT
A SOLUTION THAT BEST FIT.
ARE THE PEOPLE OF THE STATE OF
CALIFORNIA'S AGAIN THING
COMMITTEE MEMBERS AND STAFF.
THANK MISS GIPSON BEING HERE
WITH US.
ALRIGHT WITH THAT WILL GO AHEAD
AND CONCLUDE THAT THIS HEARING
BY FORTY THINK
[inaudible]
RING.
MANAGING [inaudible]
THANK --
ABSOLUTE