Advanced Energy Perspectives

In January, Gov. Jerry Brown declared he would seek a two-thirds vote to extend California’s cap-and-trade system to 2030. The extension to 2030 would keep in place the market-based mechanism that enables the state to reach its ambitious greenhouse gas reduction goals on a cost-effective basis – and send a market signal in favor of advanced energy technologies and services – while passage by two-thirds would protect the system from legal challenges claiming it is a tax, which by law requires approval by supermajority vote. Supporters and neutral observers alike agreed that was the ideal scenario for locking in cap and trade for the next decade, but there was substantial doubt that the votes were there. The idea of a two-thirds vote became even more challenging after the Governor asked the Legislature to hike the gas tax as part of a transportation package. Could he get a two-thirds vote twice in one year? Yes, he could and he did. Here’s how – and how AEE was engaged all along the way.

Time and time again, California has proven to the nation and the globe that economic and environmental goals can be achieved simultaneously. California’s longstanding record in implementing innovative policies has helped make it a world leader in the use and development of advanced energy technologies. That is why it is imperative for state lawmakers to extend the state’s cap-and-trade program to 2030. They’ll get a chance to do so next week.

A bill co-sponsored by AEE to give a boost to electric vehicles in California got a boost itself last week with a well-covered press conference highlighting the measure, which would establish an ambitious program to stimulate EV purchases. The bill’s author, Assemblymember Phil Ting, hosted the press event at a set of charging stations across from San Francisco City Hall. “We need a more robust incentive program to jump-start the market so that everyone can get behind the wheel of an electric vehicle,” said Ting. His bill, AB 1184, is intended to do just that – backed by a pool of up to $3 billion for EV-buying incentives.

California has longstanding vehicle electrification goals in place. The state is actively implementing its ambitious Zero-Emission Vehicle (ZEV) mandate and is hoping to reach Gov. Brown’s goal of 1.5 million ZEVs on the road by 2025. While more Californians are choosing cleaner, more fuel-efficient vehicles, challenges remain. The California Air Resources Board (CARB) estimates that by 2030, 5 million vehicles will need to be on the road to reach the state’s greenhouse gas emission (GHG) reduction goals. Although leading nationally with at least 225,000 electric vehicles (EVs) now on the road, California falls woefully short in trajectory to meet its target. To address this challenge, AEE is co-sponsoring AB 1184, a bill authored by Assemblymember Phil Ting, which would create the California Electric Vehicle Initiative (CEVI). Modeled on the successful California Solar Initiative, which brought the solar industry to cost-competitive scale in the Golden State, CEVI aims to simultaneously tackle three critical elements of the transportation electrification equation: customer adoption, stable long-term funding, and build-out of charging infrastructure.

California is entering its fifth year of drought and is in the midst of decision-making about the future of the state’s climate goals. California’s water infrastructure represents one of the state’s largest energy users, consuming 19% of the state’s electricity for treating, pumping, and conveyance. The greenhouse gas (GHG) emissions associated with California’s water use are equal to the emissions from more than 7 million cars. This is what we call the water-energy nexus, and it is the next frontier for California’s climate and energy leadership. Advanced Energy Economy recently provided policymakers with our business-based perspective on it.