Western States Petroleum Association

California Biomass Collaborative

Catherine Reheis-Boyd Western States Petroleum Association

May 10, 2010

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Western States Petroleum Association

Connecting the sustainability dots

Energy

Economy

Environment

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Western States Petroleum Association

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

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Western States Petroleum Association

Biomass and transportation fuels

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

  Gasification

  Pyrolysis

  Biomass-to-liquids

  Landfill gas to energy

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Western States Petroleum Association

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

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The challenge

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Western States Petroleum Association

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

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Western States Petroleum Association

Sustainability: energy, economy & environment

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

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The role of renewable energy in CA supply

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Western States Petroleum Association

CA energy consumption by sector, 2007

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Western States Petroleum Association

Energy

Economy

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Future U.S. energy supply projections

Western States Petroleum Association

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

Western States Petroleum Association

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

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Western States Petroleum Association

Expanding alternative fuels – current laws

Federal Renewable Fuels Standard 2

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Western States Petroleum Association

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

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Environment

Western States Petroleum Association

GHG emissions: keeping perspective

2005 CO2 equivalent emissions

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

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Western States Petroleum Association

Carbon capture & storage key to sustainability

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Western States Petroleum Association

Carbon capture & storage key to sustainability CCS is scaling up

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Western States Petroleum Association

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

Western States Petroleum Association

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Western States Petroleum Association

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

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Economy

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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

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

Housing

$2,048

Transportation (gas and maintenance only)

$756

Natural gas

$35

Electricity

$124 Food

$895

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

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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

LCFS

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

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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

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