Western States Petroleum AssociationSep 09, 2013 · 2 Sanjay B Varshney, Dean, College of Business...

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Western States Petroleum Association

California Biomass Collaborative

Catherine Reheis-Boyd Western States Petroleum Association

May 10, 2010

Connecting the sustainability dots

Energy

Economy

Environment

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 2006

Biomass and transportation fuels

  Cellulosic feed stocks derived from forestry, agriculture, and urban wastes

  Gasification

  Pyrolysis

  Biomass-to-liquids

  Landfill gas to energy

AB 32 & Low Carbon Fuel Standard targets

AB 32 Global Warming Solutions Act

  Reduce CO2 to 1990 levels by 2020 – a 30% reduction

  Reduce CO2 to 80% of 1990 levels by 2050

Low Carbon Fuel Standard

  Reduce “carbon intensity” of transportation fuels at least 10% by 2020

The challenge

California’s GHG footprint and reduction goals

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, http://ciee.ucop.edu/

Assumes moderate growth levels

Sustainability: energy, economy & environment

Source: EPA, http://www.epa.gov/airtrends/aqtrends.html

The role of renewable energy in CA supply

CA energy consumption by sector, 2007

Energy

Economy

Future U.S. energy supply projections

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

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

Expanding alternative fuels – current laws

Federal Renewable Fuels Standard 2

Federal CAFE and mileage standards

  Passenger cars – 27.5 mpg

  Light trucks, vans, SUVs – 20.7 mpg

  Energy Independence and Security Act of 2007 – fleet-wide average of 35 mpg by the year 2020

Environment

GHG emissions: keeping perspective

2005 CO2 equivalent emissions

Source: U.S. EPA, U.S. Energy Information Administration

Carbon capture & storage key to sustainability

Carbon capture & storage key to sustainability CCS is scaling up

CO2 sources & potential storage – California

  Gas Reservoirs 1.7   Oil Reservoirs 3.6

Estimated CO2 Storage Capacities (Billion Tons)

Source: West Coast Regional Carbon Sequestration Partnership

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

Economy

Economic sustainability

CARB1   $24.9 billion in direct costs   $40.4 billion in savings

CA State University Sacramento2

  $63.9 billion direct costs on small businesses

  $52 billion on consumers   $49,691 annual cost per

small business   1.1 million jobs lost

AB 32 costs/benefits

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

Impacts on consumers of AB 32 CSUS Study: $3,858 additional annual cost per household

Housing

$2,048

Transportation (gas and maintenance only)

Natural gas

Electricity

$124 Food

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

Estimated costs/benefits of LCFS

CARB1   $3.4 billion in annual cost

savings by 2020   Net reduction in criteria

pollutants   Significant reduction in

greenhouse gas (GHG) emissions

Sierra Research2   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

Source: 1 “California Air Resources Board, Staff Report: Initial Statement Of Reasons, Proposed Regulation To Implement The Low Carbon Fuel Standard March 5, 2009

2 Preliminary Review of the CARB Staff Analysis of the Proposed Low Carbon Fuel Standard (LCFS) Sierra Research, Inc. April 8, 2009

Need comprehensive energy policies

  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 10-20 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

Western States Petroleum AssociationSep 09, 2013 · 2 Sanjay B Varshney, Dean, College of Business...

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