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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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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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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CA energy consumption by sector, 2007
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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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Expanding alternative fuels – current laws
Federal Renewable Fuels Standard 2
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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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Carbon capture & storage key to sustainability
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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
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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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