California Biomass Collaborative

Transcription

1 California Biomass Collaborative Catherine Reheis-Boyd Western States Petroleum Association May 10, 2010

2 Connecting the sustainability dots Energy Environment Economy 2

3 Biomass and transportation fuels The production and use of the state s considerable biomass resources can achieve progress toward meeting the state s petroleum reduction, climate change, and renewable energy goals, while providing strategic social, economic, and environmental benefits to California. BioEnergy Action Plan for California, July

4 Biomass and transportation fuels Cellulosic feed stocks derived from forestry, agriculture, and urban wastes Gasification Pyrolysis Biomass-to-liquids Landfill gas to energy 4

5 AB 32 & Low Carbon Fuel Standard targets AB 32 Global Warming Solutions Act Reduce CO 2 to 1990 levels by 2020 a 30% reduction Reduce CO 2 to 80% of 1990 levels by 2050 Low Carbon Fuel Standard Reduce carbon intensity of transportation fuels at least 10% by

6 The challenge 6

7 California s GHG footprint and reduction goals Assumes moderate growth levels 7 Source: Implications of Defining and Achieving California's 80% Greenhouse Gas Reduction Goal, Steven R. Schiller, Senior Advisor, California Institute for Energy and Environment, University of California, Office of the President,

8 Sustainability: energy, economy & environment 8 Source: EPA,

9 The role of renewable energy in CA supply 9

10 CA energy consumption by sector,

11 Energy Economy 11

12 Future U.S. energy supply projections 12

13 13 Source: California Air Resources Board, staff report on Low Carbon Fuel Standard, April 23, 2009

14 14 Source: California Air Resources Board, staff report on Low Carbon Fuel Standard, April 23, 2009

15 Expanding alternative fuels current laws Federal Renewable Fuels Standard 2 15

16 Federal CAFE and mileage standards Passenger cars 27.5 mpg Light trucks, vans, SUVs 20.7 mpg Energy Independence and Security Act of 2007 fleetwide average of 35 mpg by the year

17 Environment 17

18 GHG emissions: keeping perspective 2005 CO 2 equivalent emissions Source: U.S. EPA, U.S. Energy Information Administration 18

19 Carbon capture & storage key to sustainability 19

20 Carbon capture & storage key to sustainability CCS is scaling up 20

21 Western States Petroleum Association CO2 sources & potential storage California Estimated CO2 Storage Capacities (Billion Tons) 21 Gas Reservoirs Oil Reservoirs Source: West Coast Regional Carbon Sequestration Partnership

22 CCS in California Northern California CO2 Reduction Project - underground saline formation in Northern California Hydrogen Energy California electricity generation using hydrogen with CCS and enhanced oil recovery in Kern County 22

23 Economy 23

24 Economic sustainability AB 32 costs/benefits CARB 1 $24.9 billion in direct costs $40.4 billion in savings CA State University Sacramento 2 $63.9 billion direct costs on small businesses $52 billion on consumers $49,691 annual cost per small business 1.1 million jobs lost 24 Source: 1 California Air Resources Board, Climate Change Scoping Plan Appendices, Volume II, December 2008 page G- I-8 2 Sanjay B Varshney, Dean, College of Business Administration, CSU Sacramento and Dennis H. Tootelian, Professor of Marketing & Director for Small Business, CSU Sacramento, June 2009

25 Impacts on consumers of AB 32 CSUS Study: $3,858 additional annual cost per household Housing $2,048 Electricity $124 Food $895 Transportation (gas and maintenance only) $756 Natural gas $35 25 Source: Sanjay B Varshney, Dean, College of Business Administration, CSU Sacramento and Dennis H. Tootelian, Professor of Marketing & Director for Small Business, CSU Sacramento, June 2009

26 Estimated costs/benefits of LCFS LCFS CARB 1 $3.4 billion in annual cost savings by 2020 Net reduction in criteria pollutants Significant reduction in greenhouse gas (GHG) emissions Sierra Research 2 Fuel costs increase by $3.7 billion per year in 2020 NOx emissions increase by more than 5 tons per day No detectable change in climate 26 Source: 1 California Air Resources Board, Staff Report: Initial Statement Of Reasons, Proposed Regulation To Implement The Low Carbon Fuel Standard March 5, Preliminary Review of the CARB Staff Analysis of the Proposed Low Carbon Fuel Standard (LCFS) Sierra Research, Inc. April 8, 2009

27 Need comprehensive energy policies 27 Need to be realistic about green energy costs and time it takes to develop technologies Economy requires readily available energy today, not just the promise of it years from now Avoid inadvertently creating unattainable public expectations Public will not allow energy development unless resulting carbon impact is addressed Public will not favor reductions in carbon emissions if, as a result, energy prices are forced upward too much, too fast An energy transition will not occur overnight, at little cost, and with no inconvenience

28 28 Western States Petroleum Association