California

Sector: Regional Government

Population:

> 35 million

Carbon Footprint:

> 505,000,000 metric tonnes CO2e (2001)

TARGETS

>Reduce community CO2e emissions to 2000 levels by 2010, 1990 levels by 2020, and 80% below 1990 levels by 2050

Achievements

>First government to regulate carbon emissions from vehicles
>30% reduction in community CO2e emissions / per capita 1975-2002 due to energy efficiency

Benefits

> Energy efficiency in the industrial and commercial sectors 1975-1995 provided net economic benefits of US$875 to 1,300 per capita
> California Energy Commission estimates that existing building and appliance standards saved Californians $56 billion through 2003 and will save an additional $43 billion in utility costs between 2001 and 2023

 

Low Carbon Solutions

Eco-Taxation Energy Efficiency Strategies and Targets Transport and Planning

Background

With a population of 35 million, and a $1.3 trillion dollar economy, California would rank in the G7 group of largest OECD economies if it were a nation. Yet in terms of carbon intensity the state is slightly atypical of the United States (US). Californians’ average annual per capita greenhouse gas emissions are 12.2 tonnes, while the average for the US as a whole is 20 tonnes. This lower emissions intensity is partly due to the fortunes of geography – the state is legendary for its mild weather, but California has also been proactive.

Since the early 1970s California has been a leader in promoting energy efficiency and cleaner fuels. More recently, as a result of the largest electricity and natural gas crisis in its history, California adopted a number of significant energy efficiency and renewable power policies. While not solely developed for the purpose of protecting the climate, the policies now in place could be considered the most comprehensive US state action on climate change to date.

Eco-Taxation

A state-wide ‘power crisis’ in 2001-2002 further expanded energy efficiency and conservation policies. In 1996 when California deregulated the electricity market it created a ‘public goods charge’ that provided funding for renewable power generation and $240 million for energy efficiency.

In 2001, in response to the power crisis, lawmakers appropriated an additional $500 million for buildings efficiency and for a high-profile public education campaign. The state utility commission established two additional incentives for lowering electricity consumption: a ‘kilowatt-hour bounty’ that rewards a 20% reduction in electricity consumption with a 20% payment, and a multi-tier rate structure that charges energy consumption over a baseline amount at a higher rate.

Energy Efficiency

California is a leader in the area of demand side management. Beginning in the 1970’s the state enacted energy efficient building code policies and numerous financial and other incentives to reduce electricity use. The effect of California’s energy efficiency programmes is pronounced. Per capita electricity use in California has remained practically unchanged since the mid-1970s, compared to a growth in national per capita electricity use of about 1.5% per year.

Strategies and Targets

The California State Legislature first recognised the potentially adverse effects of climate change in 1988 when it passed a law to assess impacts and identify mitigation strategies. Since this initial action, policy direction and agency-wide action has become more integrated and California has established: a Renewable Portfolio Standard requiring renewable energy to be the source of 20% of the electricity sold by 2017; the West Coast Initiative joining the efforts of California, Oregon and Washington State to develop and implement regional strategies for climate protection; a state-sponsored research programme on climate change; rebates for customer-owned solar and wind systems; and a greenhouse gas emissions registry for private and public sector organisations.

In 2006, Governor Schwarzenegger signed an agreement that makes California a true leader on addressing global warming. AB32 puts a cap on California’s greenhouse gas emissions and creates a clear path for a market based system and other mechanisms to bring the state’s emissions back down to 1990 levels by 2020. The bill’s language provides the state the flexibility to work with business and the public to craft appropriate measures.
On signing the bill, Governor Schwarzenegger stated “Today, I am happy to announce we have reached a historic agreement on legislation to combat global warming. We can now move forward with developing a market-based system that makes California a world leader in the effort to reduce carbon emissions. The success of our system will be an example for other states and nations to follow as the fight against climate change continues. AB32 strengthens our economy, cleans our environment and once again, establishes California as the leader in environmental protection.”

Transport and Planning

During the 1990s, the California’s emissions of CO2 from motor fuels rose significantly. In 1999, transportation accounted for 58% of CO2 emissions from the combustion of fossil fuels, while electricity production accounted for only 16%. Curbing transportation emissions will be California’s biggest challenge, as more vehicles, with lower fuel efficiency, are spending moretime on the roads. Fortunately, both the legislature and the new Governor seem willing to take this on.

In 2002, California lawmakers passed the first law in the world aimed at regulating greenhouse gas emissions from vehicles. Californians purchase 10% of all vehicles nationwide, and that purchase power has the ability to impact auto manufacturers.

Using this clout is not new for the state; California’s anti-smog rules have forced car companies to build and sell cleaner cars. The greenhouse gas regulations are to affect vehicle models released on the market beginning in the year 2009. The New York Times has described this legislation as “unquestionably the most important step taken (in the US) to control greenhouse emissions.”