SEE MY MY FRIENDS HERE --
THIS IS THE FIRST SOLO HEARING
OF OUR ENVIRONMENTAL COMMITTEE
OF A VERBAL QUALITY COMMITTEE OF
THE OF THE TERM SO WE WANT TO
BEGIN BY ADOPTING THE COMMITTEE
RULES.
AND BUT I I THINK WE NEED TO
CALL ROLE FIRST.
SO BEFORE WE EVEN A DOCTOR.
RECEDED.
THE STATUS OF CORN.
I AM ALLEN HERE BATES
[inaudible]
HILL.
STONE.
MY CASKEY HERE.
OKAY SO WE'VE GOT A QUORUM
THAT'S FANTASTIC --
WITHOUT OBJECTION WILL WILL --
LAST THE THE SECRETARY TO CALL
THE ROLL ON THE COMMITTEE RULES.
OKAY.
ALLEN.
I BATES [inaudible]
HILL.
HILL AYE STONE AYE STONE AYE
WIECKOWSKI.
AYE CASKEY AYE.
IN SENATE RESIDUE OF A VISOR
VOTE.
ON THIS NOW.
OKAY RECEIVED THAT.
I WANT TO SAY I I I DO
APPRECIATE YOUR THE PRESENCE OF
SENATE GLAZER WHO IS NOT ON THIS
COMMITTEE BUT IS IS INTERESTED
IN THIS ISSUE WITH IS ACTUALLY
AT OUR AT OUR RETREAT --
WE TALKED ABOUT SEVERAL THE
ISSUES ASSOCIATED WITH THIS AND
I WAS IN A SMALL BREAKOUT GROUP
OF CENTER GLAZERS VERY.
THOUGHTFUL AS AS EVER AND AND I
THOUGHT YOU'D ENJOY BEING HERE
AND BEING A PART OF THIS
DISCUSSION I REALLY DO
APPRECIATE DRIVING IN FROM YOUR
DISTRICT APPEAR.
AS I HOPE IS GOING TO BE A
FRUITFUL INTERESTING CONVERSE A
TWO THOUSAND AND SIX AND IT'S
THAT CALIFORNIA'S PATH AS AN
INTERNATIONAL LEADER AND
PARTICIPANT REDUCING GLOBAL
GREENHOUSE GAS EMISSIONS.
AND THEN OF COURSE IN TWENTY
SIXTEEN CALIFORNIA AND
SOLIDIFIED ITS LEADERSHIP ROLE
ON CLIMATE CHANGEWHEN THE
LEGISLATURE APPROVED IN THE
GOVERNOR.
SIGNED SB THIRTY TWO WHICH
REQUIRES THE AIR RESOURCES BOARD.
TO ENSURE THAT STATEWIDE GHG
EMISSIONS ARE REDUCED BY AT
LEAST 40% BELOW NINETEEN NINETY
LEVELS.
BY. TWENTY THIRTY BY THE END OF
TWENTY THIRTY THIS IS THE SB
THIRTY TO TARGET THAT WE'LL BE
DISCUSSING TODAY [inaudible]
NOW -- WHY
ARE WE HERE SPECIFICALLY WELL
THE CHAIR OF THE A. R. B. MADE
SOME VERY INTERESTING REMARKS --
THEIR BOARD MEETING BACK IN
DECEMBER --
WHEN THEY WERE LOOKING AT
AMENDMENTS THE CAP AND TRADE
PROGRAM?
POST TWENTY TWENTY AND A CHAIR
SAID I WILL QUOTE.
WE HAVE A LOT MORE GREENHOUSE
GAS EMISSIONS REDUCTIONS THAT WE
NEED GOING FORWARD WE KNOW WE
NOW KNOW THAT WE'RE NOT ON A
LINE THAT'S GOING TO MEET THE
TWENTY THIRTY TARGET MUCH LESS
THE TWENTY FORTY FIVE GOAL OF
CARBON NEUTRALITY.
AND SO WE'RE GOING TO HAVE TO
STEP BACK AND TAKE A SERIOUS
LOOK AT THE ROLE THE CAP AND
TRADE ANOTHER MEASURES PLAY.
IN GETTING US TO THAT POINT.
I'M SURE GOES OUT SAYING THAT
REGARDLESS OF THE DETAILS THE
CAP AND TRADE PROGRAM A. R. B.
REMAINS STATUTORILY OBLIGATED TO
ENSURE.
THAT CALIFORNIA MEETS THE TWENTY
THE THE SB THIRTY TO TARGET --
IN YOU KNOW I DON'T THINK THIS
IS THIS IS THIS IS REALLY
OPPORTUNITY FOR US.
TO HEAR FROM THE CHAIR CAN FLESH
OUT.
THE THOUGHTS BEHIND THOSE
COMMENTS AT THE BOARD MEETING
AND THEN HAVE A BROADER
DISCUSSION ABOUT HOW IT IS THAT
WE MEET THESE SB THIRTY TWO
GOALS THAT ARE ARE SO IMPORTANT.
SO WE'RE GONNA HEAR FROM CHAIR
NICHOLS WE'RE GONNA HERE --
WE'RE WALKS THE FIRST YEAR OF
LEGISLATIVE REVIEW OF THE
STATE'S CLIMATE CHANGE PROBLEMS
A POLICIES FROM THE LA --
WE'RE GONNA HEAR FROM CARE
NICHOLS.
AND HOPEFULLY HEAR FROM HER A
LITTLE BIT ABOUT YOU CAN ENSURE
THAT WE MEET THE GOALS --
AND WHAT SORT OF ASSISTANCE OR
INTERVENTION THE LEGISLATIVE
LEGISLATURE AUDA AUDA CONSIDER.
WE'RE THEN GOING TO HEAR FROM
THE SENATE'S APPOINTEE TO THE
INDEPENDENT EMISSIONS MARKET.
ADVISORY COMMITTEE THE IT MAC.
ABOUT BOTH THE CAP AND TRADE
PROGRAM ON WHICH THE I MAC
ADVISE THEIR B. AS WELL AS THE
STATE'S OTHER CLIMATE CHANGE
POLICIES.
AND THEN WE'RE GONNA LASTLY HERE
FROM A PANEL ABOUT THE
SCIENTIFIC FEASIBILITY OF THE
STATE'S CLIMATE CHANGE GOALS IN
THE TECHNOLOGIES NEEDED. TO
ACHIEVE THOSE GOALS.
SO SHOULD BE A REALLY
INTERESTING DISCUSSION I'M I'M
LOOKING FORWARD. TO IT A GREAT
DEAL I I WANT TO THANK MISTER
SEE ANOTHER'S FOR ALL THEIR HELP
ON PREPARING THE BACKGROUNDER.
AND WITHOUT OF LOVE --
TO GIVE MY COLLEAGUES
OPPORTUNITY MAKE ANY OPENING
COMMENTS TO LIKE TO MAKE OR OKAY
ALL RIGHT.
YES JUDGE AND AND I I NAY
OBVIOUSLY MAJOR SHOUT OUT TO MY
THE FORMER CHAIR OF THIS
COMMITTEE AND THE CHAIR OF THE
SUBCOMMITTEE THAT OVERSEES THE
BUDGET IN THIS AREA --
MR CASKEY THANK YOU CHAIRMAN --
ALLEN AND I APPRECIATE THIS
OPPORTUNITY FOR A COUPLE OF
INTRODUCTORY MARKS I'VE BEEN YOU
KNOW.
DEEPLY INVOLVED IN --
CLIMATE CHANGE DISCUSSIONS AND
EIGHT YEARS THAT I'VE BEEN IN
THE LEGISLATURE IN --
IT'S CLEAR TO ME THAT WE AS A
BODY AND IS THE STATE NEED TO DO
MORE TO MEET THE CLIMATE GOALS
THAT WE SET OUT IRAQ COP TWENTY
FOUR IN KATOWICE POLAND --
JUST TWO MONTHS AGO.
I HAD AN OPPORTUNITY THE SPEAK
WITH A NUMBER SPEAK IN AN ON THE
NUMBER OF THE FORMS BUT ALSO
SOME OF THE DELEGATES THAT WOULD
THERE.
WITH THE HOUSE OF NATIONALS THAT
PARTICIPATED IN OTHER ADVOCATES
AND THEY ALL HAD ONE CONTINUOUS
CHORUS WAS THAT WHAT IS
CALIFORNIA DOING WHAT IT WHAT'S
THE NEXT STEP.
AND IT'S WELL UNDERSTOOD THAT
THE THE TRUMP ADMINISTRATION HAS
BEEN AN IMPEDIMENT TESTS ARE
REACHING OUR A COMICAL SO
WHETHER IT'S THE COLD RELAXATION
ORDER.
TODAY THIS MORNING'S NEWS ABOUT
THE NINE HUNDRED TWENTY EIGHT
MILLION DOLLARS IT'S LIKE BE
GOING FOR HIGH SPEED RAIL FOR
ELECTRIFICATION --
FROM THE FUEL STANDARDS IN THE
POWER PLANT EMISSIONS THE
PRESIDENT'S TEAM OF LITERALLY
SETTING OUR NATION BACK
GENERATIONS BY THE ACTIVITIES
THAT THEY'RE TAKEN SO EVERYONE
IS LOOKING TO CALIFORNIA TO LEAD.
THEY'RE LOOKING AT OUR POLICIES
AND ARE PROGRAMS THEY CAN THAT
THEY CAN EMULATE AN ADOPT AND DO
A COPY CAT ON AND THEY ALL WANT
TO KNOW. TO KNOW WHAT WE ARE
DOING RIGHT NOW HOW WE ADJUSTING
ARE ARE THE PAUL WHOEVER POLICY
FOR TWENTY THIRTY BUT HOW WE
ADJUSTING OUR PROGRAMMING.
SO YOU KNOW WHAT'S AS THE
BACKGROUNDER OF THE AT TO THE
COMMITTEE --
POINTS OUT THE CAPTURE PROGRAM
IS PROVIDING PRACTICALLY NO
BENEFIT TO REDUCING OUR
GREENHOUSE GASES IT PLACES A
GREAT WHICH PLACES A GREATER
BURDEN ON OUR STATE AGENCIES IN
THE LEGISLATURE'S TO PROMULGATE
CAPEN.
OR COMMAND CONTROL MECHANISMS TO
CALL FOR GREATER REDUCTIONS.
IN IN POLLUTION AND AT A GREATER
SPEED TO TAKE FROM FROM -
THE COP IT BRING BACK IS --
IS MORE ACUTE --
STAFF REMINDS US THAT THE THE
TWENTY SEVENTEEN SCOPING PLAN
HAS UPPED.
THE INDICATED THAT THE ROLE THE
CAP AND TRADE IS GET A PET PLAYS
NOW 38% THIS WAS WE WERE IN
SINGLE DIGIT THIS WAS ALWAYS
MUST BE THE FALL BACK PROGRAM.
AND A REGULAR PROGRAMS WERE
SUPPOSED TO ACHIEVE THE LION'S
SHARE SO IT'S A CHALLENGE BEFORE
US -- AND I
LOOK FOR FROM HEARING FROM THE
PANELISTS MISTER CHAIR WORKING
WITH MY COLLEAGUES --
YOU KNOW --
AND WORKING ACROSS THE AISLE.
DOCTOR STONE TO MAKE SURE THAT
THIS CHALLENGE THE THREE NEW
SENSE OF URGENCY THAT WE HAVE
PEOPLE RECALL --
DEPENDING ON US THANK YOU MISTER
CHAIRMAN OF YEAH THAT'S RIGHT.
I I DO WANT TO JUST TAKE A
MOMENT TO RECOGNIZE AND SALUTE
THE THE PAST CONTINUED AND
FUTURE LEADERSHIP THAT A SINGLE
CASKEY AS AS PROVIDED IN THIS
AREA AND THIS HAS BEEN A REAL
PASSION FOR HIM.
AND I KNOW HE'S GOING TO
CONTINUE TO PLAY IT REALLY
IMMENSELY IMPORTANT ISSUE PRO
WE'RE GONNA BE WORKING HAND IN
GLOVE TOGETHER.
ON ON THESE ISSUES --
BOTH ON THIS COMMITTEE AND AND
ELSEWHERE AND SO ON THANK YOU.
THANK YOU BYE.
OKAY LET'S GET STARTED WITH ROSS
BROWN WHO'S THE PRINCIPAL FISCAL
AND POLICY ANALYST WITH THE LA
ELSE WAS GOING TO GIVE US A
LITTLE BIT OF A REVIEW --
AS TO THE I SAID THE POLICY
LANDSCAPE.
THANK YOU MISTER CHAIR AND
MEMBERS -- I
A WE PUT TOGETHER A BRIEF
HANDOUT FOR TODAY'S PRESENTATION
SO YOU SHOULD HAVE THAT AS PART
OF YOUR INFORMATION IF YOU DON'T
PLEASE LET ME KNOW AND I'LL BE
HAPPY.
TO DISTRIBUTE OR GIPSON EXTRA
COPIES TO THE SERGEANT TO PASS
OUT --
THERE'S A LOT OF GROUND TO COVER
HERE.
THERE'S A LOT OF POLICIES WHAT
ISSUES TO DISCUSS --
I'M GONNA TRY TO MOVE THROUGH
THE INFORMATION THE HAND OUT
PRETTY QUICKLY --
BUT I'M ALWAYS HAPPY TO ANSWER
MORE DETAILED QUESTIONS
AFTERWARDS --
MINUTE JUST EVERYONE DISHES
TERRIBLE IT IS A QUESTION BUT
HOW DO WE GET THESE A LITTLE
EARLIER --
SO WE CAN.
HOW HOW DOES THAT WORK WITH THE
LA -- IN
TERMS OF I MEAN WHAT WE WILL TRY
TO GET THEM TO YOU AS EARLY AS
POSSIBLE SO WE'RE HAPPY TO WORK
WITH YOU AND YOUR STAFF ON ON
YOU KNOW HOW FAR IN ADVANCE IS
MOST HELPFUL FOR YOU TO GET IT.
TO GET IT TO YOU --
YEAH WE'RE TRYING TO SORT OF
BALANCE SOME OTHER WORKLOADS SO
SOMETIMES THE TYPE TIME LINES
WILL GET A LITTLE BIT TIGHT BUT
WE WILL DO EVERYTHING IN OUR
POWER TO TRY AND GET IT TIMELINE
AS IS MOST HELPFUL FOR YEARS
ITSELF TO START AFTER I STARTED
OR NO NO.
PROBLEM ALLEN AND BY THE WAY
THAT THEIR PRESENTATION IS ON
OUR WEBSITE AS WELL FOR ANYBODY
DOES NOT A COPY RIGHT NOW --
SON'S GONNA WALK THROUGH QUICKLY
TO SOME BACKGROUND ON KIND OF
OVERALL EMISSIONS WERE EMISSIONS
HAVE BEEN WHAT THE NATURE STATE
POLICIES ARE AND GET INTO A
BRIEF DISCUSSION OF A SUMMARY OF
SOME OF THE FINDINGS THAT WE'VE.
HAD IN SOME OF THE REPORTS THAT
WE'VE ISSUED IN RECENT YEARS
JUST OOKING AT THE STATE'S
POLICIES MENTAL ISSUES FOR THE
COMMITTEE TO CONSIDER.
SO REAL QUICKLY PAGE ONE OF THE
HAND OUT I'M GONNA SKIP OVER
REALLY QUICKLY THIS IS A SUMMARY
OF THE DIFFERENT SOURCES OF
EMISSIONS AS YOU CAN SEE THERE'S
A WIDE VARIETY OF SOURCES --
TRANSPORTATION BEING THE LARGEST --
PAGE -- TO
THE CHAIR COVERED KIND OF THE
STATE'S GREENHOUSE GAS GOALS ARE
NOT GONNA GO OVER THOSE.
IN ANY MORE DETAIL AGAIN CARB
ALSO HAS A REQUIREMENTS FOR THE
SCOPING PLAN TO LAY OUT THE PLAN
FOR HOW THE STATE WILL ACHIEVE
THOSE GOALS --
THE BOX AT THE BOTTOM OF PAGE
TWO OF YOUR HAND OUT INCLUDES A
KIND OF HIGH LEVEL SUMMARY OF
THE DIFFERENT TYPES OF IT'S
GREENHOUSE GAS EMISSIONS.
CAP AND TRADE FRIDAY POLICIES
AROUND SHORT LIVED CLIMATE
POLLUTANTS LIKE METHANE
EMISSIONS.
A RENEWABLE PORTFOLIO STANDARD --
INCENTIVES AND REGULATIONS
AROUND ENERGY EFFICIENCY.
A LOW CARBON FUEL STANDARD WHICH
TARGETS --
LOWERING CARBON INTENSITY IN
TRANSPORTATION FUELS WHICH IS A
REGULATION DEVELOP BY CARBON --
VARIOUS VEHICLE RELATED PROGRAMS
IN THE LIGHT DUTY AND HEAVY DUTY
SPACE.
AS WELL AS POLICIES AROUND
REDUCING VEHICLES MILE VEHICLE
MILES TRAVELED.
SO IF YOU TURN TO PAGE THREE OF
YOUR HAND OUT THIS JUST GIVES --
GRAPHICAL SUMMARY OF WHAT THE
STATE'S TARGETS ARE --
IN TWENTY TWENTY AND TWENTY
THIRTY AND THEN WHAT ACTUAL
MISSIONS HAVE BEEN SINCE --
A. B. THIRTY TWO PASSED SO YOU
CAN SEE MISSIONS HAVE GONE DOWN
AND GOOD NEWS THAT IN TWENTY
SIXTEEN THE STATE MATT IT'S
TWENTY TWENTY TARGET AND
EMISSIONS WERE BELOW THE ANY --
SIXTEEN I THINK JUST ANOTHER KEY
TAKE AWAY FROM THIS CHART IS
JUST THE LEVEL OF AMBITION GOING
DOWN TO THAT TWENTY THIRTY GOAL
SO JUSTIN.
ANNUAL TERMS THE KIND OF YOU
KNOW ANNUAL REDUCTIONS NEEDED TO
HIT THAT --
TWENTY TWENTY TARGET ARE ABOUT
1% PER YEAR WHEREAS IF YOU LOOK
AT PRODUCTIONS --
NEEDED TO GET THAT TO THE TWENTY
THIRTY TARGET IT'S CLOSER 24%
PER YEAR SO MUCH MORE AMBITION
AMBITIOUS TARGET.
IF YOU TURN TO PAGE FOUR OF THE
HAND OUT THIS GIVES YOU A SENSE
OF KIND OF WHERE --
WHAT WE'RE EMISSIONS ABANDONED
SECTORS --
DIFFERENT SOURCES OF EMISSIONS --
PLAYED A KEY THING TO HIGHLIGHT
IS THE DARK LINE IN THE MIDDLE
THERE IS --
EMISSIONS FROM ELECTRICITY
THAT'S BEEN THE BIGGEST DRIVER
OF EMISSION REDUCTIONS SO FAR --
TRANSPORTATION IS ALSO GOING
DOWN SOME ALTHOUGH IN THE LAST
FEW YEARS IT'S PICKED UP A
LITTLE BIT --
AND SOME OF THE OTHER MAJOR
CATEGORIES OF REMAINED
RELATIVELY FLAT SO THE BIGGEST
CONTRIBUTORS ELECTRICITY AND
MOST OF THOSE OF THOSE
REDUCTIONS OF COME FROM.
A REDUCTIONS IN EMISSIONSFROM
IMPORTED ELECTRICITY.
SO IF YOU TURN TO PAGE FIVE OF
THE HAND OUT.
OF THIS JUST SUMMARIZES --
SOME OF THE HIGH LEVEL NOW CARBS
MODELING AND THEIR TWENTY
SEVENTEEN SCOPING PLAN --
THAT THE CHAIR MENTIONED --
THE CUMULATIVE REDUCTIONS THAT
ARE -- AND
CAR BEST MATES WOULD BE NEEDED
TO MEET THAT TWENTY THIRTY GOAL
ARE SIX HUNDRED TWENTY ONE
MILLION METRIC TONS.
OF THE BIGGEST POLICIES THAT IT
HIGHLIGHTS TO HELP HELP ACHIEVE
THOSE REDUCTIONS ARE CAP AND
TRADE A 38%.
OF RADIO OF POLICIES AROUND
SHORT LIVED CLIMATE POLLUTANTS
AT 35%.
AND THEN --
OTHER POLICIES RELATED TO MOBILE
SOURCE EMISSIONS --
RENEWABLE ELECTRICITY.
ARE.
A LITTLE BIT SMALLER PERCENTAGE
OF KIND OF THE OVERALL
CUMULATIVE MISSION REDUCTIONS --
THAT IT FORECAST WOULD BE NEEDED
TO MEET THE STATE'S GOALS --
DOING HIGHLIGHT JUST A COUPLE
THINGS.
THE ANALYSIS DONE BY CAR DOES
FOCUS ON CUMULATIVE EMISSIONS SO
IT'S KIND OF THE OVERALL
AGGREGATE EMISSIONS.
YEAR OR YEAR AND YEAR --
YEAR OVER YEAR --
AND THE FOCUS ON IN THAT
ANALYSIS IS NOT EXPLICITLY ON
KIND OF THE ANNUAL MISSIONS IN
THE YEAR TWENTY THIRTY WHICH IS.
IS THE STATE'S STATUTORY TARGET
NOW THERE IS A A STRONG SORT OF
SCIENTIFIC BASIS AND AND HAVE AN
INTEREST IN FOCUSING ON Q.
MOTIVE EMISSIONS GIVEN THE
GREENHOUSE GAS EMISSIONS.
TO STAY IN THE ATMOSPHERE AND SO
THERE'S THERE'S ABOUT COMMITTED
EMISSIONS OVER TIME WE JUST
WANNA SORT OF HIGHLIGHT THAT
THERE'S NEAR THE STATE'S GOALS
ARE EXPRESSED IN ANNUAL AN
ANNUAL TERMS AS WE WILL GET TO
IN A LITTLE BIT ON NOT CREATES A
BIT OF ATTENTION AND KIND.
OF HOW THE PROGRAM IS SET UP
PARTICULARLY CAP AND TRADE
PROGRAM IN THE DEGREE TO WHICH
IT MIGHT ACTUALLY CHIEF THAT
ANNUAL TARGET AND TWENTY THIRTY
FINALLY --
THE SCOPE AND PLAN IDENTIFIES
pCAP AND TRADE AS SORT OF THE
POLICY TO ENSURE THAT THE STATE
NEEDS ITS TWENTY THIRTY GOAL SO
IT'S SORT OF A HIGHLIGHTED AS
KIND OF THE THE BACKSTOP FOR THE
THE THE TOOL IT'S GOING TO MAKE
SURE WHERE OTHER POLICIES.
AREN'T ACHIEVING --
AN ADEQUATE LEVEL OF REDUCTIONS
TO MEET THAT TWENTY THIRTY GOAL
CAP AND TRADE WILL SORT OF PICK
UP THE REST OF THE REMAINDER
THAT ARE NEEDED TO TO MEET THE
STATE'S GOALS.
SO IF YOU TURN TO PAGE SIX OF
YOUR HAND OUT.
GO BRIEFLY THROUGH --
SOME REPORTS THAT WE'VE ISSUED
AND HIGHLIGHT SOME OF THE KEY
TAKEAWAYS --
FIRST --
JUST KIND OF ON THE OVERALL
EFFECTS OF THE HE'S JUST --
BY WAY OF BACKGROUND.
AB THREE NINETY EIGHT THE BILL
THAT EXTENDED THE CAP AND TRADE
PROGRAM IN.
TWENTY SEVENTEEN ESTABLISHED A
REQUIREMENT FOR OUR OFFICE.
TO ANNUALLY ASSESS THE ECONOMIC
IMPACTS AND BENEFITS OF THE
STATE'S CLIMATE POLICIES AND GHG
TARGETS.
AND SO THIS DECEMBER LAST
DECEMBER WE ISSUED A COUPLE
REPORTS --
ONE OF THEM WAS JUST KIND OF
PROVIDING AN OVERVIEW OF THE
GENERAL TYPES OF A FAX.
THAT STATE CLIMATE POLICIES HAVE
AND SO THAT'S VERY COMPILER WILL
IN GENERAL DISCUSSION.
OF THE THE TYPES OF TEXAS STATE
POLICIES --
AND WHAT WE COULD CUT SEE ABOUT
NEAR THE MAGNITUDE OF THOSE
AFFECTS SOME OF THE KEY
TAKEAWAYS ARE ARE REALLY I THINK
THAT THE OVERALL EFFECTS OF
STATE CON A PIECE.
ON A POLICY SO FAR UNCLEAR --
AND THAT'S FOR A VARIETY OF
REASONS --
ONE IS THAT JUST THE POLICIES
HAVE A WIDE VARIETY OF AFFECTS
THERE'S OBVIOUSLY BENEFITS
ASSOCIATED WITH REDUCING
GREENHOUSE GAS EMISSIONS --
THERE ARE --
REDUCTIONS DIED SIGNIFICANT
BENEFITS AS WELL.
THERE'S A VARIETY OF COSTS
INCLUDING KIND OF DIRECT
FINANCIAL COSTS MAYBE IN A MORE
EXPENSIVE SOURCE OF ENERGY AND
SO THERE'S KIND OF A DIRECT HIRE
FINANCIAL COSTS ASSOCIATED WITH
PROVIDING THAT.
AS WELL AS MORE CAN KIND OF
IMPLICIT OR INDIRECT COSTS SAID
FOR EXAMPLE IF --
ENERGY IS MORE EXPENSIVE THAN
MAYBE HOUSEHOLDS WILL ADJUST THE
THERMOSTAT OR ON THEIR H. BACK A
LITTLE BIT LASSEN SO THERE'S
SORT OF A A CHANGE IN SORT OF
COMFORT --
BENEFIT THAT SOMEONE MIGHT GET
FROM THAT TO LIVE JUST OF A WIDE
VARIETY OF AFFECTS THAT ARE
ASSOCIATED WITH THESE POLICIES.
ARE OFTEN VERY DIFFICULT TO
ESTIMATE --
AND THAT GETS TO OF THE LAST
SECTION HONEST ON PAGE SIX IS
THE KEY CHALLENGES AN ESTIMATE
IN THOSE POLICY AFFECTS.
OTHERS A WIDE VARIETY OF THEM
AND THEN TRYING TO TEASE OUT.
WHAT THE SPECIFIC AFFECT OF A
PARTICULAR POLICY A PARTICULAR
GROUP OF POLICIES IS
PARTICULARLY DIFFICULT?
GIVEN THE CHANGES AND OTHER
ECONOMIC CONDITIONS CHANGES
ANOTHER TECHNOLOGICAL
ADVANCEMENTS SOME OF WHICH ARE
UNRELATED TO THE STATE'S KIND OF
POLICIES THEMSELVES AND SO SIR
TRYING TO TEASE ALL THOSE OUT AS
A AS PARTICULARLY CHALLENGING.
ON PAGE SEVEN WE TALK ABOUT TO
SOME OTHER CHALLENGES IN TRYING
TO KIND OF COME UP WITH A NUMBER
ON KIND OF WHAT THE OVERALL
ECONOMIC EFFECTS OF THE POLICIES
ARE --
INCLUDING TRYING TO ACCOUNT FOR
A IMPACTS ON EMISSIONS IN OTHER
JURISDICTIONS --
AND EMISSIONS ASSOCIATED WITH
AND AS WELL AS CONSIDERING SOME
OF THE INTERACTIONS BETWEEN THE
DIFFERENT STATE POLICIES AND
OTHER FEDERAL POLICIES.
I'M GONNA MOVE ON TO PAGE --
EIGHT SOME COMMENTS ON THE CAP
AND TRADE PROGRAM A COUPLE OF
LITTLE MORE THAN A YEAR AGO WE
ISSUED A REPORT --
HIGHLIGHTING SOME ISSUES FOR
LEGISLATIVE OVERSIGHT ON
IMPLEMENTATION OF THE CAP AND
TRADE PROGRAM --
DOING A STATE UP FRONT --
AS AN OFFICE WE THINK OF ECONOMY
WIDE PRICING POLICY LIGHT
CONCENTRATE IS THE MOST COST
EFFECTIVE POLICY TO REDUCE
GREENHOUSE GAS EMISSIONS.
GIVEN ALL OF THE DIFFERENT --
POTENTIAL EFFECTS AND COSTS
ASSOCIATED WITH DIFFERENT
POLICIES AND THE DIFFICULTY IN
ESTIMATING THOSE WE THINK
THERE'S JUST A LOT OF VALUE AND
A PROVIDING FLEXIBILITY AND
PROVIDING AN INCENTIVE TO
DIFFERENT BUSINESSES AND
HOUSEHOLDS TO TAKE ACTIONS THAT
ARE.
WITH COSTLY TO THEM AND SO
RELYING ON A KIND OF FLEXIBLE
ECONOMY WIDE MARKET PRICES
PARTICULARLY VALUABLE AND WE
THINK IT'S THE MOST COST
EFFECTIVE STRATEGY AND IN MOST
CASES -- BUT
THAT SAID --
AND ARGUE CAP AND TRADE LIKELY
IS NOT PLAYED A PRIMARY ROLE IN
EMISSION REDUCTIONS SO FAR --
THE PRICES HAVE BEEN RELATIVELY
LOW AND NOW THEY HAVE HAD AN
EFFECT YOU DO STILL HAVE A PRICE
ON A MISSION SO I DO THINK THEY
ARE HAVING AN EFFECT BUT THE
PRICE HAS BEEN RELATIVELY LOW --
BECAUSE EMISSIONS HAVE BEEN
BELOW THAT OF THE PROGRAM --
OTHER FACTORS LIKE ECONOMIC
CONDITIONS TECHNOLOGICAL
ADVANCEMENTS ANOTHER ON THE
POLICIES OF THE STATE IS
IMPLEMENTED ARE.
LIKELY --
MAJOR DRIVERS AND COST EMISSIONS
TO REMAIN BELOW CAPS FROM
EXACTLY WHICH ONE OF THOSE
FACTORS IT'S IT'S DIFFICULT TO
SAY BUT THERE'S A WIDE VARIETY
OF FACTORS THAT --
ARE LIKELY DRIVING --
HAVE HAVE CONTRIBUTED TO THE
DOWNWARD TREND IN EMISSIONS --
THE DETAILS OF THE POST TWENTY
TWENTY CONCENTRATE
IMPLEMENTATION --
WILL HAVE SIGNIFICANT EFFECTS --
SIGNIFICANT IMPLICATIONS FOR THE
OVERALL EFFECTS OF THE PROGRAM.
AND SO IF YOU TURN TO PAGE NINE
WE HIGHLIGHT SOME KIND OF KEY
ISSUES FOR LEGISLATIVE
CONSIDERATION AND OVERSIGHT --
MANY OF THE KEY IMPLEMENTATION
DECISIONS HAVE A KEY TRADE OFFS
JUST BETWEEN COSTS AND EMISSION
REDUCTIONS OR EMISSIONS
CERTAINTY.
AND SO THAT'S KIND OF THE
BALANCE THAT --
THAT THE LEGISLATURE AND CARBON --
WILL HAVE TO STRIKE IN A LOT OF
THESE DECISIONS.
I'M JUST GONNA HIGHLIGHT TWO OF
THEM IN THE SECOND BULLET.
I'LL WE DISCUSS MANAGING
ALLOWANCE PRESENCE CERTAINTY.
SO GIVEN THE MORE STRANGE --
FUTURE PRICES ALTHOUGH THEY'RE
SUBJECT TO UNCERTAINTY.
NAME MIGHT HAVE TO INCREASE
SUBSTANTIALLY IN ORDER TO
ENCOURAGE ADOPTIONS THAT ARE
NEEDED TO MEET THE STATE'S.
TWENTY THIRTY GOALS AND SO --
TRYING TO SORT OF AGAIN BALANCE --
THOSE HIGHER PRICES WITH THE
EMISSIONS AND CERTAINTY IS A KEY
CHALLENGE AND I THINK ONE
QUESTION --
FOR THE LETTERS LEGISLATIVE
OVERSIGHT FOR CAR BAR AND OF ARE
THE TOOLS FOR MANAGING ALLOWANCE
PRICES SUCH AS A PRICE FLOOR
PRICE CEILING.
AND SO CALLED SPEED BUMPS ARE
THEY SAID AT LEVELS THAT ARE
CONSISTENT WITH HOW THE
LEGISLATURE BALANCES THOSE TRADE
OFFS BETWEEN --
WHAT WHAT THE OVERALL COSTS ARE
AND CERTAINTY AROUND MEETING
THOSE EMISSIONS TARGETS ND SO --
THAT'S ONE ONE KEY AREA FOR
OVERSIGHT THE SECOND ONE A
HIGHLIGHT AS IS THE FIRST BULLET
ON YOUR PAGE --
IS SENDING THE EMISSIONS CAPS
AND THE KEY QUESTION AND OUR
VIEWERS ARE THE PROGRAM CAPS AT
A LEVEL THAT ARE CONSISTENT WITH
THE STATUTORY TWENTY THIRTY
ANNUAL TARGET TEN OUT THIS IS
JUST KIND OF A GRAPHICAL
ILLUSTRATION OF OF I THINK SORT
OF ONE OF THE KEY QUESTIONS HERE.
IS JUST THIS QUESTION AROUND
WHETHER A LARGE NUMBER OF
THANKED ALLOWANCES IN THE CAP
AND TRADE PROGRAM INCREASES THE
RISK OF EXCEEDING THE STATE'S
ANNUAL TWENTY THIRTY TARGET.
SO JUST TO KIND OF WALK YOU
THROUGH THIS FIGURE THE THE MORE
STEEP LINE --
WHAT'S GONNA STARTS OUT AT THE
TOP OF THE LEFT AND THEN --
GOES DOWN TO MEET THE TWENTY
THIRTY TARGET --
THOSE ARE KIND OF THE THE ANNUAL
PROGRAM CAPS. FOR THE CAP AND
TRADE PROGRAM.
THE SHALLOW LINE THAT IS KIND OF
A AN EXAMPLE EMISSIONS SCENARIO
WHERE EMISSIONS ARE STILL
DECLINING AND IN THE FIRST
SEVERAL YEARS OF THE PROGRAM
EMISSIONS THE GOOD THING THAT
EMISSIONS HAVE BEEN BELOW THE
CAPS BUT WHAT THAT MEANS IS THAT.
THERE'S A KIND OF BANK OF
ALLOWANCES THEY'RE BUILT UP THAT
YEARS.
AND SO --
IT'S POSSIBLE THAT WE CAN GET
OUT TO TWENTY THIRTY IF THERE'S
A LARGE BANK OF ALLOWANCES THAT
CAN THEN BE USED IN LATER YEARS
THEN.
YOU CAN MEET OUR SORT OF OVERALL
CUMULATIVE.
EMISSIONS GOALS SET OUT BY THE
PROGRAM BUT WHEN HE REACHED
TWENTY THIRTY YOUR ANNUAL
EMISSIONS MIGHT NOT BE ON THE
TRAJECTORY THAT YOU WANT --
AND AND THAT YOU HIGHLIGHTED IN
YOUR SB THIRTY TWO TARGETS.
SO THAT'S KIND OF A WE THINK A
KEY QUESTION. FOR CARBON AND
JUST FOR THE LEGISLATURE TO
CONSIDER IS IS THE PROGRAM SET
UP IN A WAY.
THAT'S CONSISTENT WITH THE
TWENTY THIRTY TARGET AND THE
LEVEL OF AMBITION ABOUT TARGET.
SO -- PAGE
ELEVEN MOVE THROUGH THERE'S NO
WE HAVEN'T WE ISSUED ANOTHER
REPORT FOCUSING MORE
SPECIFICALLY ON THE STATE'S
TRANSPORTATION POLICIES.
ON THE CHART ON PAGE ELEVEN
GIVES YOU A SENSE OF JUST THE
WIDE VARIETY OF DIFFERENT
TRANSPORTATION RELATED SPECIFIC
YET SHE POLICIES THAT THE STATE
HAS.
INCLUDING LIGHT DUTY VEHICLE
PROGRAMS REGULATIONS INCENTIVES --
INFRASTRUCTURE.
HEAVY DUTY VEHICLE VOUCHERS FOR
A CLEANER HEAVY DUTY VEHICLES AS
WELL AS PILOTS AND DEMONSTRATION
PROGRAMS.
LOW CARBON FUEL STANDARD AND
VEHICLE MILES TRAVELED SO I WILL
GO THROUGH THOSE IN DETAIL BUT
JUST TO GIVE YOU A SENSE OF THE
THE RANGE OF DIFFERENT PROGRAMS.
PAGE TWELVE OF THE HAND OUT --
JUST SUMMARIZES SOME OF OUR KEY
TAKE AWAYS AFTER HAVING REVIEWED
THE AVAILABLE INFORMATION OF
LITERATURE ON ALL THOSE
DIFFERENT PROGRAMS AND WHAT WE
KNOW ABOUT THE EFFECTS OF THOSE
PROGRAMS.
AGAIN THE OVERALL MAGNITUDE OF
THE EFFECTS ARE LARGELY ON CLEAR
THERE ARE CLEARLY SOME BENEFIT
SOME SIGNIFICANT BENEFITS
ASSOCIATED WITH THE PROGRAMS AS
pSISTER TRYING TO PINPOINT WHAT
THE MAGNITUDE OF THOSE ARE IT IS
DIFFICULT FOR A LOT OF THE
REASONS THAT I MENTIONED BEFORE
TRYING TO SORT OF TEASE OUT.
THE EFFECTS OF THESE PROGRAMS.
RELATIVE TO OTHER ECONOMIC
CONDITIONS CHANGES IN GASOLINE
PRICES AND OTHER FACTORS.
IS DIFFICULT --
THERE'RE.
WORSE SOME MORE SORT OF
PROSPECTIVE ANALYSES TRYING TO
SORT OF FORECAST WHAT THE
EFFECTS OF THESE PLICIES WILL
BE ONCE ARE IMPLEMENTED.
I TINK ONE GAP THAT WE
IDENTIFIED AS THAT THEY'RE NOT
MANY ESTIMATES OF ACTUAL PROGRAM
AFFECTS AFTER THEIR IMPLEMENTED
AND AGAIN THAT'S NOT ALWAYS EASY
BUT WE SEE THAT THIS AS ONE OF
SIGNIFICANT GAP IN KIND OF THE
OF STATE TRYING TO FIGURE OUT
WHAT WHAT HAVE THE EFFECTS.
OF THESE POLICIES BEEN WHAT'S
EFFECTIVE OTHERS RELATIVELY
LIMITED NUMBER OF TRYING TO KIND
OF RETROSPECTIVE ANALYSES
LOOKING BACK ON ON WHAT HAS THE
PROGRAM ACHIEVED --
AND THOSE ARE DIFFICULT AND
SOMETIMES CAN REQUIRE YOU KNOW
VERY ADVANCE TO TO SINGLE
TECHNIQUES OR MAYBE ON IN THE
EARLY STAGES OF PROGRAM
EXPANSION OR DEVELOPMENT TRYING
TO SORT OF SET UP THE PROGRAM AS
AS A PILOT AND TRYING TO SORT OF
SET UP THAT WAY TO TRY. TO
EVALUATE THE PRO EXCUSE ME.
OF THE LARGE NUMBER POLICIES --
TARGETING TRANSPORTATION
EMISSIONS CREATES A VARIETY OF
OF CHALLENGES INCLUDING JUST
CHALLENGES TRYING TO ESTIMATE
THE EFFECT OF EACH PARTICULAR
PROGRAM --
AND POTENTIAL LACK OF
COORDINATION BETWEEN --
DIFFERENT AGENCIES THAT OPERATE
A SIMILAR TYPES OF PROGRAMS.
HOLDON MOVE ON QUICKLY --
FINALLY ON PAGE --
THIRTEEN THE THERE'S NOT ALWAYS
GREAT EVIDENCE ON THE COSTS AND
BENEFITS OF EACH PROGRAM BUT
BASED ON THE THE EVIDENCE THAT
WE DID FIND ON THE COSTS OF
REDUCING THE A TON OF GREENHOUSE
GAS EMISSIONS IN EACH PROGRAM --
MANY OF THE POLICIES OR SOME OF
THE POLICIES ARE RELATIVELY
COSTLY WAYS TO REDUCE GREENHOUSE
GAS EMISSIONS --
RELATIVE TO FOR EXAMPLE A CAP
AND TRADE PROGRAM --
HOWEVER IT CAN THEY COULD BE
VALUABLE ANOTHER --
CIRCUMSTANCES FOR EXAMPLE --
SOME OF THE POLICIES COULD BE
VALUABLE AND KIND OF PROMOTING
ACTIVITIES THAT MAY BE A CARBON
PRICE ON ITS OWN EXAMPLE --
RESEARCH AND DEVELOPMENT
ACTIVITIES PARTICULARLY EARLIER
STAGE RESEARCH AND DEVELOPMENT
ACTIVITIES OR PILOTS AND
DEMONSTRATIONS.
EVEN WITH A CARBON PRICE THERE
MAY NOT BE SORT OF AN ADEQUATE
INCENTIVE AND PRIVATE.
PRIVATE ENTITIES MAY NOT INVEST
IN THOSE THINGS AND SO THERE MAY
BE A ROLE FOR GOVERNMENT.
TO KIND OF PROMOTE ADDITIONAL
INVESTMENT AND THOSE TYPES OF
KIND OF ACTIVITIES TO PROMOTE
INNOVATION AND RESEARCH AND
DEVELOPMENT --
OTHER AREAS ARE CO POLLUTANTS
AGAIN SOME OF THESE PROGRAMS
THAT SHE SIGNIFICANT BENEFITS.
IN REDUCING POLLUTANTS AND SO --
YOU KNOW I HAD TO EXTENT
PROGRAMS ARE SIR TARGETED AT
THOSE THOSE BENEFITS THEY THEY
MIGHT BE VALUABLE --
IN THAT REGARD.
FINALLY PAGE --
FOURTEEN JUST SOME HIGH LEVEL --
ISSUES FOR LEGISLATIVE
CONSIDERATION AGAIN WE THINK
USING RELYING ON A COMPANY WIDE
CARBON PRICING --
WOULD ACHIEVE LOW COST
GREENHOUSE GAS EMISSION-REDUCTIONS I'LL AND COST
EFFECTIVENESS IN OUR VIEW IS
INCREASINGLY IMPORTANT AS THE
GOALS.
BECOME MORE AMBITIOUS AND THE
TARGETS BECOME MORE AMBITIOUS
OUT -- TO
TWENTY THIRTY WERE WARY THINK
THE LEGISLATURE SHOULD THINK
ABOUT IMPLEMENTING COUPLE
COMPLIMENTARY POLICIES AND BUT
CERTAIN CIRCUMSTANCES WHERE
THEY'VE.
IDENTIFIED A AN AREA WHERE
CARBON PRICING DOESN'T
ADEQUATELY SORT OF ENCOURAGE --
COST EFFECTIVE EMISSION
REDUCTIONS --
FOR ONE REASON OR ANOTHER --
ONE OTHER ISSUE WE WANT TO
HIGHLIGHT IS --
AND ARGUE THERE SHOULD.
LIKE WHAT IS THAT WOULD MEAN
COMPLEMENTARY POLICIES WHAT SO
YEAH SEVENTY YEAR.
RIGHT SO I THINK.
THE WAY WE VIEW IT AS THINKING
ABOUT WHAT CARBON PRICING DOES
AND WHAT IT DOESN'T DO.
AND YOU KNOW CARBON PRICING CAN
KIND OF ENCOURAGE --
VARIETY OF DIFFERENT ACTIVITIES.
TO REDUCE EMISSIONS ONE THING
THAT.
A COMMUNIST WILL OFTEN POINT TO
THAT PRICING DOESN'T DO FOR
EXAMPLE IS --
EVEN WITH A PRICE ON CARBON
THERE MAY JUST BE AN UNDER
INVESTMENT IN KIND OF NEW
TECHNOLOGIES AND RESEARCH AND
DEVELOPMENT --
THAT'S ONE I THINK COMMON
EXAMPLE ON JUST BECAUSE SOME OF
THE BENEFITS OF INVESTING.
AND MORE RESEARCH AND
DEVELOPMENT AND INNOVATION WILL
SOMETIMES SPILL OVER TO OTHER
FIRMS OR AND SO --
YOU KNOW THE PRIVATE SECTOR ON
ITS OWN MIGHT TEND TO UNDER
INVEST IN THOSE AREAS AND SO --
YOU KNOW THAT THE STATE'S SORT
OF FOCUSING AND SOME OF IT'S A
NON CARBON PRICING POLICIES ON
WAYS TO KIND OF PROMOTE THAT
TYPE OF INNOVATION OR ADDITIONAL
RESEARCH AND DEVELOPMENT --
IT'S KIND OF ONE WAY TO THINK
ABOUT SORT OF YOU KNOW HOW.
TO YOU KNOW HOW TO KIND OF WRAP
OTHER POLICIES AROUND CARBON
PRICING --
THERE'S I THINK THERE'S ALSO
ANOTHER --
ARGUMENT I THINK --
FOR SOME FEELING AND
INFRASTRUCTURE AND ALSO MY
COMMENTS WILL POINT TO THE SUN.
KIND OF AFFECTS OF YOU KNOW YOU
NEED THE FILLING STATION OR THE
CART WHICH ONE COMES FIRST SORT
OF THE THE FILLING STATION OR
THE VEHICLES AND THERE MIGHT BE
A RATIONALE FOR GOING TO TRYING
TO PROMOTE SERGEANT CHARGING FOR
EXAMPLE YEAH --
BUT TRYING TO SORT OF IDENTIFY
WE AWAY THOSE GAPS ARE AND WHAT
WHAT CARBON PRICING DOESN'T
ACHIEVE ON ITS OWN AND THEN
TRYING TO SORT OF FIT THE
POLICIES --
TO TO TO THOSE PARTICULAR GAPS.
AND SO FOLKS IN POLICIES THAT
ARE MOST LIKELY TO ENCOURAGE
GREENHOUSE GAS REDUCTIONS IN
OTHER JURISDICTIONS TO MAXIMIZE
THE OVERALL GREENHOUSE GAS
BENEFITS --
I KNOW THAT'S SOMETHING THAT THE
THE LEGISLATURE THINKS ABOUT
THAT WE JUST WANTED.
TO HIGHLIGHT THAT IS
PARTICULARLY IMPORTANT --
GIVEN THE CONTEXT OF CALIFORNIA
BEING ABOUT 1% OF GLOBAL
GREENHOUSE GAS EMISSIONS AND
THAT LIKELY THE MOST SIGNIFICANT
AFFECT HAVE IS ON THE DEGREE TO
WHICH IT ENCOURAGES EMISSION
REDUCTIONS IN OTHER
JURISDICTIONS AND SO --
HOW TO DO THAT IS NOT ALWAYS AN
EASY QUESTION AND NOT ALWAYS AN
EASY QUESTION TO ANSWER --
BUT MIGHT WANT TO CONSIDER
THINKING ABOUT YOU KNOW WHICH
FOR EXAMPLE WHICH POLICIES ARE
LIKELY TO SERVE AS A
DEMONSTRATION FOR OTHER
JURISDICTIONS WHICH ONES ARE
LIKELY TO BE.
ADOPTED IN OTHER JURISDICTIONS
AND KIND OF FOCUS ON ON THOSE AS
MUCH AS POSSIBLE --
AS WELL AS POLICIES AGAIN.
THAT MIGHT PROMOTE TECHNOLOGICAL
ADVANCEMENTS IN TECHNOLOGY THAT
CAN THEN BE USED IN OTHER
JURISDICTIONS AND THINKING ABOUT --
WHICH POLICIES ARE MOST
EFFECTIVE AT DOING THAT AND
THEREFORE MIGHT HAVE THE SORT OF
SPILLOVER BENEFITS IN.
AN AMBUSH AS EMISSION REDUCTIONS
IN OTHER JURISDICTIONS.
AND FINALLY --
ESTABLISHING A ROBUST SYSTEM TO
EVALUATE THE EFFECTS OF STATE
CLIMATE POLICIES ITALKED A LOT
ABOUT I DON'T.
KNOW WHAT WE DON'T KNOW SO FAR --
SOME EXAMPLES THE LEGISLATURE
MIGHT WANT TO THINK ABOUT
REQUIRING DEPARTMENTS TO CONDUCT
RETROSPECTIVE EVALUATIONS AGAIN
OF IT OF ITS MAJOR POLICIES --
FOR EXAMPLE IS COULD INCLUDE AS
A PROGRAMS BEING ROLLED OUT
TRYING TO PLAN.
FOR HOW HOW THAT PROGRAM WILL BE
EVALUATED --
OFTENTIMES IN OUR VIEW THAT THAT
HASN'T BEEN DONE.
ON AND SO THE AND THAT MIGHT
MEAN BRINGING AND RESEARCHERS
EARLY ON AS THE PROGRAM'S BEING
ROLLED OUT --
TWOS KIND OF SET UP A SYSTEM FOR
YOU KNOW WHAT DATA MIGHT NEED TO
BE COLLECTED --
OR TO THE VALUE WITH THE PROGRAM
AFTER IT'S IMPLEMENTED A SO THE
LEGISLATURE CANNOT GET
INFORMATION ON ON WHAT THE
EFFECTS OF THE PROGRAM TO BAN --
AGAIN IT GETS ESPECIALLY
IMPORTANT GIVEN CALIFORNIA'S
ROLE AS TRYING AND TRYING TO
SORT DEMONSTRATE WHICH POLICIES
ARE AFFECTED OF AND AND
THEREFORE CAN KIND OF INFLUENCE --
EMISSION REDUCTIONS IN OTHER
JURISDICTIONS.
SO I WILL END MY COMMENTS THERE
AND I'M HAPPY TO ANSWER
QUESTIONS.
WELL THIS IS GREAT AND VERY.
COMPREHENSIVE I I DO APPRECIATE
EVERYTHING IT'S IN HERE AND
THANK YOU THANK YOU FOR SUCH A
CONFERENCE PRESENTATION.
AS IS THAT IT WILL LOSE I WANT
TO GET EARLIER SO I COULD.
SO GET ALL IN --
IN IN TIME SO LET'S OPEN THE FOR
LET'S OPEN THE COMMITTEE --
THE FOR THE FOR THE COMMITTEE
FOR QUESTIONS AND THOUGHTS --
MR CENTER.
YOU COMMENT ON OUR THE
CUMULATIVE EFFECTS THAT --
ON COVERED.
ENTITIES AND THE CAPTAIN TRIPLE
THAT WE KNOW THAT WE'VE GOT 80%
OF THE ENTITIES THAT ARE COVERED
THOSE ENTITIES AND WILDFIRES NO
WE'VE GOT. TWELVE YEARS GOING
FORWARD WE DO BEFORE WE GET TO
TWENTY THIRTY IN SORT OF AN AUNT.
IN ANTICIPATION AT THE MORE
INTENSITY WHEN THE AFTERMATH OF
THE FIRE WITH THE CHARRED --
LUMBER SITTING THERE IF WE DON'T
WE MOVE WE DON'T DO ANYTHING
THAT CONTINUES TO ADD TO THE
GREENHOUSE GAS.
CALCULATION WHICH WE NEVER
THOUGHT ABOUT THAT FRIEND PAT WE
DIDN'T INCLUDE THAT.
YEAH I MEAN AND JUST BY WAY OF
BACKGROUND.
YOU KNOW THE CHART ON FIGURE
THREE WHICH KIND OF GIVES YOU A
EMISSIONS THAT ARE COUNTED IN
SORT OF THE OFFICIAL STATE
INVENTORY.
OF THOSE DON'T INCLUDE --
ANY SORT OF CHANGES AND CARBON
RELATED TO FORESTRY FOR EXAMPLE --
I KNOW THERE'S THERE'S
INCREASING WORK IN THAT AREA
SORT OF TRYING TO ESTIMATE THOSE
THE FACTS AND I THINK ONE
CHALLENGES.
TRYING TO SORT OF ESTIMATE THE
SORT OF LONG TERM EFFECTS OF
ENOUGH YOU KNOW CARBON BEING
RELEASED FROM THE ATMOSPHERE AND
THEN BEING SEQUESTERED AND AND
TREES THAT MIGHT GROW SORT OF
BEHIND THAT AND SO.
YOU'RE TRYING TO LOOK AT SORT OF
THE LONG TERM --
CARBON IMPLICATIONS.
IS IMPORTANT BUT I THINK YOU
KNOW BOTTOM LINE IS --
SOME OF THE KIND OF OFFICIAL
STATE INVENTORIES WE HAVE DON'T
INCLUDE KIND OF THE NATION'S
ASSOCIATED WITH THAT BUT IT'S
CLEARLY A KIND OF AN IMPORTANT
AREA -- AND
I THINK THE STATUS --
IS IS CONTINUING TO TRY AND
MONITOR AND TRY TO DO A BETTER
JOB OF KIND OF COUNTY IN --
WHAT THOSE CHANGES ARE?
JUMP TO PAGE FOURTEEN OF YOUR
PRESENTATION WHAT CAN WHAT
LESSONS CAN WE TEACH OTHER
JURISDICTIONS ON REDUCING IS
THIS AN AREA OF HOW WE MANAGE NO
WE DO A LOT OF SUPPRESSION DO WE
DO WE HAVE THE TWENTY FIRST
CENTURY FORCE MANAGEMENT.
FOR THE CONTROLLED BURNS TO WERE
LIMITED GROWTH IN OUR AND OUR
WILDLIFE URBAN INTERFACE MEAN
THAT THESE AREAS THAT WE SHOULD
BE LOOKING AT TO HELP MEET THAT.
THAT THAT THAT --
CAM TO EFFECTIVE --
EMISSIONS BY --
TWENTY THIRTY I MEAN I I THINK
THOSE ARE ALL IMPORTANT ISSUES
SORT OF ON THEIR OWN I GUESS THE
DEGREE TO WHICH BAY KIND OF
INFLUENCE ACTIONS IN OTHER
JURISDICTIONS I GOT I AND I
FRANKLY DON'T REALLY KNOW KIND
OF YOU KNOW HOW HOW THE STATE
CAN KIND OF TARGET.
ITS ACTIVITIES --
TO TO DO ALL OF THE ALL OF THE
ISSUES THAT YOU TOUCH ON ARE
IMPORTANT --
NOT JUST FROM SORT OF A
GREENHOUSE GAS PERSPECTIVE BUT
JUST A AN OVERALL KIND OF PUBLIC
SAFETY AND FORCED HEALTH.
PERSPECTIVE --
I THINK THIS QUESTIONS AROUND
WELL HOW DO YOU.
TARGET POLICIES --
IN A WAY THAT HAVE THAT KIND OF
MAXIMUM IMPACT ON WHAT OTHER
JURISDICTIONS ARE DOING IS JUST
INCREDIBLY IMPORTANT ONE AND
IT'S FRANKLY I THINK DIFFICULT
FOR US TO KIND OF COME UP WITH
SORT OF AN ANALYTICAL ANALYTICAL
ANSWER TO THAT BUT ANYTHING IT'S
OF IT THROUGH THE LENS.
OF ON YOUR TECHNOLOGIES OR JUST.
TRYING TO GET A SENSE OF WHAT
OTHER JURISDICTIONS MIGHT BE.
WILLING.
TO ADOPT SO I THINK IN
PARTICULAR SOMETHING THAT'S COST
NO COST EFFECTIVE POLICIES A
GREAT OUT WELL ON THE ON THAT
METRIC YOU KNOW I THINK OTHER
JURISDICTIONS ARE ALSO LOOKING
FOR COST EFFECTIVE POLICIES BUT
AS FAR AS SORT OF TRYING.
TO TRYING TO IDENTIFY WHICH ONES
ARE GOING TO HAVE THE THE ISN'T
THINKING ABOUT.
SO FOR THOSE PEOPLE THAT ARE
HERE IN THE SMALL GROUP OF
PEOPLE THAT FOLLOW THE OPTIONS
IT IS AKTION SEASON FOR THE CAP
AND TRADE PROGRAM SO WE'RE GOING --
TO BE WATCHING THOSE NUMBERS --
THAT GO IN --
THIS YEAR MY ONE OF THE
CHALLENGES THAT WE HAVE IS THAT
WE'RE STILL UNDER AB THIRTY TWO
WHICH REQUIRES US TO SPEND EVERY
PENNY UNDER THE LAW TO REDUCE
EMISSIONS AND WE HAVE.
AB THREE NINETY EIGHT AND AND AB
SIX SEVENTEEN ARE YOU KNOW SO MP
ALLOW SOME WIGGLE ROOM HOW THE
LEGISLATURE MAY SPEND THE MONEY
BUT BUT URINALYSIS PREVIOUSLY IS
ALWAYS BEEN THAT WE'RE STRICT
GUIDELINES --
WE CAN USE SOME OF THE AUCTION
MONEY THAT COMES. FOR TWENTY
TWENTY ONE OPTIONS MY NUMBERS
HAVE BEEN OF FOLLOWING IS ABOUT
15% OF THAT IN CUT --
THE AUCTION PROCEEDS ARE COMING
IN -- FOR
THESE OUT. FIVE AUCTIONS IS THAT
DRIVE WITH WHAT YOU ANTICIPATE
COULD HAPPEN AT LEAST THIS
FISCAL YEAR.
E. I DON'T HAVE THE EXACT
NUMBERS IN FRONT OF ME BUT I
THINK SOMETHING IN THAT RANGE IS --
PROBABLY RIGHT I MEAN I THINK --
IT'S HARD TO KNOW YOU KNOW WHAT
NUMBER OF FUTURE ALLOWANCES AS
YOU'RE TALKING ABOUT SORT OF THE
POST TWENTY TWENTY ALLOWANCES
HOW MANY OF THOSE WILL SELL
IMMINENCE AND SOME PAST AUCTIONS
THEY HAVE AN ALL SOLD SO IT.
NOTED THAT THE NUMBERS COULD
SWING A LITTLE BIT ON THAT BUT I
THINK THAT GENERAL RANGE SEEMS
RIGHT ONE OF THINGS THAT PEOPLE
ARE LOOKING FOR IS WHAT'S COULD
BE THAT FLOOR.
NUMBER AND WE YOUTH YOU HAVE A
AND CAP SAYS THE CAP IS GOOD
SENSE AND IN THE LEGISLATURE WE
SET UP THE PROGRAM WE'VE GAVE
THE AIRPORT COMPLETE CONTROL
OVER IT.
DO YOU HAVE AN OPINION ON
WHETHER THE LEGISLATURE COULD
SET A FLOOR OR SET A CAP GIVEN.
GIVEN WITHOUT TRIGGERING A PROP.
TWENTY SIX POINT SIX IS A NEW
DEAL BUT BUT IS THAT IS THAT A
POSSIBILITY THAT THAT WE COULD
ENCOURAGE.
THE AIRPORT TO BY SETTING
SETTING ARE CAPPED AND NO AND NO
IT'S NOT PROHIBITED JUST SORT OF
THINGS THAT WE NEVER THOUGHT
ABOUT IF WE DO IT IN ORDER.
TO IN ORDER TO ACHIEVE THAT
TWENTY THIRTY GOAL NOT.
AS A TAXI MECHANISM BUT SORT OF
FOR FILLING THE STATUTORY
DIRECTION THAT WE'VE GIVEN.
YEAH I MEAN I THINK ON THE LEGAL
QUESTION --
I'M GONNA HAVE TO SAY WE I MEAN
THAT'S PROBABLY A QUESTION BEST
FOR COUNCILMAN ON AND BUY
SOMETHING WHICH I DON'T THINK WE
CAN A PINE ON A KIND OF WEATHER
THOSE TYPES OF CHANGES WOULD
REQUIRE A TWO THIRDS VOTE OR NOT.
I THINK FROM A POLICY
PERSPECTIVE AND CERTAINLY THE
LEGISLATURE SHOULD BE THINKING
ABOUT --
INSURING THAT THE PROGRAM HAS
BEEN IMPLEMENTED AWAY THAT IT'S
CONSISTENT WITH ITS GOALS IN ITS
PRIORITIES AND THAT MIGHT MEAN
PROVIDING ADDITIONAL A MORE
SPECIFIC DIRECTION AND WRITE IT
DIFFERENT WAYS AND SO WE YOU
KNOW WE DEFINITELY THINK THOSE
ARE ISSUES LEGISLATURE SHOULD BE
THINKING ABOUT.
AND ONE FINAL QUESTION MISTER
CHAIR IS --
ONE MILLION METRIC TONS.
CAN YOU GIVE US SOME GUIDANCE
HERE ON AND WHEN WE GO THROUGH
WE WOULD LOOK AT THE GOVERNOR'S
PROPOSAL ON HOW THE SPEND CAP
AND TRADE MONEY --
AGAIN I WOULD I BELIEVE THAT
WERE.
WERE -- IT
LOOKS LIKE WE TO GET THREE POINT
TWO BILLION VERSUS TWO POINT
FIVE BILLION BUT THE LONG THOUGH
INMAY WHEN THE FINAL OPTION IS
IS IS AND IT'S SO SO THAT'S AN
OPPORTUNITY.
THE MAY REVISED FOR THE FOR THE
EXECUTIVE BRANCH AND THE SENATE
TO LOOK AT HOW WE WOULD BEST
INVESTED SHOULD I BE USING OR
SHOULD THE LEGISLATURE BE USING.
THESE THESE --
A PERCENTAGE IS THAT YOU'VESET
FORTH OF HOW MUCH 30% OF THE
CUMULATIVE REDUCTION SHOULD BE
COMING FROM CAP AND TRADE SHOULD
SO SHOULD THAT WOULD BE THE
INVESTMENT IN A SMALLER
PERCENTAGE IN RENEWABLE
PORTFOLIO BECAUSE IT'S ONLY.
REPRESENTS 3% OF WHAT ARE SHORT
TERM TARGETS ARE I I GET THE
INVESTMENT IN AND OUR RESEARCH
AND DEVELOPMENT BUT IT ID SORT
OF GUIDELINES ON WHERE THE MONEY
SHOULD BE GOING.
OR CAN YOU FLUSH IT OUT AND
SEEING WHETHER MAY BE IT MAY BE
WE MAKE IT BETTER SHORT TERM
ACHIEVEMENTS BECAUSE WE CAN TALK
ABOUT GET MORE BANG FOR THE BUCK.
RIGHT -- AND
I AGAIN WE'RE GOOD IT WE'VE GOT
REQUEST THAT THE GOVERNOR HAS
SAID ON THIS LOW CARBON FUEL
STANDARDS AND ALL THESE OTHER.
VARIOUS PROGRAMS OF WHAT WE'RE
WE'RE PUTTING THE INVESTMENT.
IN ORDER TO ACHIEVE THE TWENTY
THIRTY GOALS UNDERSTAND YEAH I
MEAN I I WOULDN'T LOOK AT THE
NUMBERS --
ON PAGE FIVE AS SORT OF
GUIDELINES OF HOW TO THINK ABOUT
SPENDING CAP AND TRADE REVENUE --
I THINK WE WOULD THINK ABOUT --
YOU KNOW WHERE YOU KNOW FIRST
OFF WATER KIND OF LEGISLATORS
PRIORITIES AND IF IF THE
PRIORITY IS KIND OF REDUCING
GREENHOUSE GAS EMISSIONS.
WHERE ARE SORT OF GAPS --
EITHER IN CARBON PRICING OR JUST
ANOTHER POLICIES THE LEGISLATURE
COULD USE THE MONEY TO ENCOURAGE
THE MOST --
PRODUCTIONS WITH THAT MONEY --
THAT COULD INCLUDE KIND OF YOU
KNOW FOCUSING ON SOME OF THESE
CATEGORIES --
BUT AT THAT SORT OF DEPENDS ON
THE THANK --
YEAH BUT THERE ARE THERE ARE
ALSO I THINK SORT OF OTHER GOALS
THAT.
IN SOME CASES LEGISLATURE HAS
IDENTIFIED IN COPELAND
REDUCTIONS ANOTHER THING SO YOU
KNOW THAT WHILE THE GX SHE'S
MIGHT HAVE TO BE BALANCED
AGAINST SOME OF THOSE OTHER
GOALS AS WELL.
WITH THE LIMITATION OF HOW MUCH
OF THE PROCEEDS FROM THE OPTIONS
ALLOW US WITH THE FLEXIBILITY
VERSUS WHAT WE'RE BOUND BY LAW
TO DO SIMPLE MEDICATION RIGHT
SURE I CAN'T BREAK THE LAW.
BY [inaudible]
THANK YOU --
QUESTIONS FROM MEMBERS I'VE
FINISHED ON THANK YOU A SERVER.
THE RATE PRESENTATION I THINK
WITH ANY OF OUR PROGRAMS IN THE
STATE OF THINGS IMPORTANT --
TO BE ABLE TO MEASURE THE
SUCCESS.
OR LACK OF SUCCESS OF THESE
PROGRAMS.
WHY IS IT BEEN SO DIFFICULT TO
ASCERTAIN THE COSTS AND BENEFITS
OF?
OUR CLIMATE CHANGE PROGRAMS AS
IT BECAUSE WE THE DATE IS TOO
HARD TO COLLECT OR IS IT BECAUSE
SIMPLY IS FAILING TO COLLECT IT.
IN I I THINK IT'S A LITTLE BIT
OF BOTH --
AT EIGHT I DO WANT TO BE UP
FRONT THAT --
IT CAN BE VERY DIFFICULT TO TRY
TO SORT OF TEASE OUT AND SPECIFY
THE EXACT AFFECTED FOR
PARTICULAR POLICY AMONGST A WIDE
VARIETY OF OTHER FACTORS THAT
AFFECT EMISSIONS AND COSTS.
IN OTHER WAYS --
WE DO THINK THAT --
WITH KIND OF A MORE VALUATION
THERE'S PROBABLY OPPORTUNITIES
TO JUST TO GET SOME BETTER
INFORMATION MAYBE NOT ON EVERY
SINGLE POLICY BUT ON SOME OF
THEM -- AND
MIGHT REQUIRE MORE RESOURCES --
YOU KNOW SOME OF THE QUESTIONS I
THINK JUST LOOKING BACK AT
PROGRAMS THAT HAVE ALREADY BEEN
IMPLEMENTED --
THERE MAY BE SOME CHALLENGES
THERE BUT YOU KNOW THERE'S A LOT
OF SMART PEOPLE IN THE STATE
THAT --
CONTRITE A SORT OF TEASE OUT THE
EFFECTS OF PARTICULAR POLICIES
BUT ME ON SOME INSTANCES IT
MIGHT BE LIMITED.
I THINK ON A ON A GOING.
GOING FORWARD BASIS TRYING TO
THINK ABOUT BEFORE HAND AS
POLICIES ARE BEING EITHER
EXPANDED OR NEW POLICIES ARE
BEING IMPLEMENTED --
AND OUR VIEW TRYING TO THINK
ABOUT --
BEFORE THEY'RE IMPLEMENTED HOW
IS THE STATE GOING TO BE
EVALUATING THOSE PROGRAMS AFTER
THEIR IMPLEMENTED IS THERE SORT
OF A PROCESS IN PLACE.
FOR YOU HOW WE'RE GOING TO DO
THAT -- AND
PLANNING --
THAT UP FRONT CAN BE VERY
HELPFUL IN TRYING.
TO IDENTIFY YOU KNOW EITHER WHAT
TYPE OF DATA MIGHT BE HELPFUL IN
ORDER TO KIND OF VALUE WITH THE
PROGRAM SEVERAL YEARS DOWN THE
LINE.
OR IN SOME CASES IT MIGHT MEAN
TRYING TO SET THE PROGRAM UP IN
A WAY THAT FACILITATES
EVALUATION FOR EXAMPLE YOU KNOW
PILOTS BEING ED AND CERTAIN
AREAS EARLY ON AND THEN.
USING THAT AS SORT OF A A WAY TO
EVALUATE IT BEFORE BEFORE IT
GETS EXPANDED.
APPRECIATE THAT --
I'M PAGE --
TEN YOU'RE LA --
ASSESSMENT A CAPTAIN A SICKLY --
OPINED THAT --
SOME OF THE BANK ALLOWANCES --
COULD AND ACCORDING TO YOUR
PRODUCTION NOT ALLOW US TO MEET
OUR TWENTY THIRTY GOALS --
DO YOU SEE THAT THERE IS A
NECESSITY AS A RESULT OF THAT.
LACK OF ATTAINMENT TO MODIFY THE
PROGRAM IN ANYWAY.
I MEAN I THINK THERE'S A LOT OF
UNCERTAINTY ABOUT AND WHERE
EMISSIONS WILL BE GOING GOING
FORWARD I MEAN THE EXAMPLE THAT
WE PERCENT ON THAT CHART IS JUST
ONE EXAMPLE THERE ARE OTHER.
SCENARIOS THAT COULD BE
DIFFERENT --
BUT WE DO THINK IT'S IMPORTANT --
FOR THE LEGISLATURE TO CONTINUE
TO ASK CARP FOR EXAMPLE HOW THEY
ENVISION CAP AND TRADE ENSURING
THAT THE STATE NEEDS THAT GOAL
VOCALIST THAT IS IN FACT SORT OF
A PART OF THE REASON FOR HAVING
CAP AND TRADE AS ENSURING THAT
WILL BE THE TOOL TO KIND OF HELP.
ACHIEVE THAT GOAL UNDER WHAT
SCENARIOS MIGHT THAT NOT HAPPEN
AND WATER SORT F THE
CONTINGENCY PLANS OR WHAT ARE
THE OPTIONS.
FOR RESTRUCTURING THE PROGRAM OR
JUST MODIFYING THE PROGRAM IN
SOME WAYS TO PROVIDE GREATER
CERTAINTY THAT IT CAN ACHIEVE
THAT -- I
MEAN IT IS WORTH NOTING THAT YOU
KNOW MAKING THOSE ADJUSTMENTS
COULD HAVE THE EFFECT OF
INCREASING ALLOWANCE PRICES AND
THAT'S ONE OF THE TRADE OFFS --
BUT IN OUR VIEW YOU KNOW SETTING
UP THE PROGRAM IN A WAY THAT'S
CONSISTENT WITH THE OVERALL
AMBITION OF THE STATE'S GOALS IS
IMPORTANT.
AND YOU HAVE OTHER TOOLS LIKE A
PRICE CEILING FOR A CONCERNS
AROUND --
YOU KNOW COSTS BECOMING TOO HIGH
AND SO WE THINK THAT SORT OF THE
TOOL THAT COULD BE USED TO CUT
MEDICAID THAT BUT THE THE THE
CAPS AND SORT THE PROGRAM
STRUCTURE OF THE NUMBER OF
ALLOWANCES BEING ISSUED SHOULD
BE SAID IN A WAY THAT'S
CONSISTENT WITH THE STATE.
GOALS IS IT YOUR OPINION THAT WE
SHOULD BE LIMITING --
FINITE LEE THE AMOUNT OF
ALLOWANCES THAT CAN BE PURCHASED --
I MEAN I HATE.
I THINK OF THE LEGISLATURE IN
ADOPTING AB THREE NINETY AIDS.
ESTABLISHED A HARD PRICE CEILING
AND DIRECTED CARP TO ESTABLISH A
HARD PRICE CEILING AND I THINK
THERE'S A LOT OF GOOD REASONS TO
DO THAT --
ULTIMATELY THERE'S GOING TO BE A
SORT OF A TRADE OFF BETWEEN
COSTS IN A MISSION CERTAINTY AND
AT SOME POINT --
YOU KNOW MAYBE THE COST MIGHT
JUST BE A LITTLE BIT TOO HIGH IN
YOUR AND THE LEGISLATURE MIGHT
BE WILLING TO SACRIFICE SOME OF
THE EMISSIONS CERTAINTY AND SO.
THAT INTO A PRICE CEILING.
IT'S A LOT OF SENSE AND SIR
TRYING TO BALANCE THOSE TRADE
OFFS AND REALLY.
I THINK THE BEST WAY TO DO THAT
MAY BE THE ONLY WAY TO DO THAT
IS TO ISSUE KIND OF AN UNLIMITED
NUMBER OF ALLOWANCES AT THAT
PRICE CEILING AND SO WE THINK
THAT SORT OF DESIGN MECHANISM.
MAKES MAKES SOME SENSE --
WHERE YOU KIND OF SET THAT PRICE
CEILING IS AN IMPORTANT
CONSIDERATION --
BUT THE THE OVERALL SORT OF
DESIGN OF SINCE INTERVIEW.
THANK YOU.
ARE THERE ANY MORE QUESTIONS
FROM --
COMMITTEE MEMBERS.
I JUST HAD A QUICK WHEN I WAS
CURIOUS ON PAGE BY PAGE TEN PAGE
SKEWS GIVES A PAGE.
THIRTEEN OF REGARDING THE
TRANSPORTATION POLICIES SEEM TO
GENERALLY BE MORE COSTLY.
IN CAP AND TRADE WHAT SORT OF AN
ECONOMIC ANALYSIS COULD WE USE
TO SPECIFICALLY FOCUS ON
TRANSPORTATION.
ARE YOU MOST CONCERNED ABOUT THE
IMPACT N ON THE ARE.
JOB CENTERS JOBS OPPORTUNITIES
THAT SEEMS TO BE WHERE MOST OF
THEM BIG CONCERN IS FOCUSED NOW
ON AND CERTAINLY WITH THE
TRANSPORTATION POLICIES A LOT OF
THE RESISTANCE.
TO CLIMATE CHANGE WHETHER IT'S
REAL OR NOT REAL HOW TO DO IT
PEOPLE PUSHING BACK ON THE
IMPACT OF THE TRANSPORTATION
POLICIES THAT HAVE BECOME PART
OF THE F..
SO HOW DO WE LOOK AT THAT
[inaudible]
GOING FORWARD.
I'M I MEAN I THINK LIKE WITH ALL
THESE ISSUES IS TRYING TO SORT
OF STRIKE THAT RIGHT BALANCE
BETWEEN.
THE STATE'S BUREAU CHIEF IN
THOSE --
GOALS AND I'M TRYING TO DO THEM
AND THE THE MOST COST EFFECTIVE
WAY -- AND
YOU KNOW IT I THINK IT REALLY
JUST IT'S IT'S ON KIND OF A CASE
BY CASE BASIS IT SORT OF DEPENDS
ON WHAT'S POLICY YOU'RE LOOKING
AT BUT I DO WANT TO NOTE THAT A
LOT OF THE TRANSPORTATION
RELATED POLICIES ALTHOUGH.
MANY OF THEM FOCUS ON GREENHOUSE
GAS EMISSIONS.
THAT A LOT OF THEM ARE BEING
IMPLEMENTED IN PART TO ACHIEVE
OTHER --
OTHER GOALS LIKE --
IMPROVEMENTS IN REGIONAL AND
LOCAL AIR QUALITY AND SO --
YOU KNOW TRYING TO SORT OF VALUE
WAIT THE PRINCIPALLY I MEAN GHG
EMISSION REDUCTIONS AND KIND OF
COST PER TON IS AN IMPORTANT
METRIC BUT THERE ARE OTHER.
IMPORTANT FACTORS THAT NEED TO
BE CONSIDERED AS WELL WILL YOU
MAKE IT SOUND GENERALLY THEY'RE
MORE COSTLY THAN CAP AND TRADE
IT SEEMS TO ME WE NEED.
MORE SPECIFIC INFORMATION ON
WHAT SPECIFIC.
AREA FENCE REALLY WE NEED TO
TARGET TO BRING SOME BALANCE.
YEAH YEAH I'M I'M IN --
THE COUPLE THE PROGRAMS THAT WE
LOOKED AT HAD JUST --
COSTS THAT WERE --
YOU KNOW AN ORDER OF MAGNITUDE
HIGHER THAN KIND OF THE CURRENT
CAP AND TRADE ALLOWANCE PRICE --
AT NOT KIND OF FOR THE MARGINAL
EMISSION REDUCTION OR THE KIND
OF THE INCREMENTAL EMISSION
REDUCTION --
MINUTE --
JUST TO KIND OF REITERATE I
THINK YOU KNOW IN OUR VIEW.
TRYING TO THINK ABOUT YOU KNOW
WAYS IN WHICH POLICY USE KIND OF
WRAP AROUND OR OR A CHEAP THINGS
THAT CARBON PRICING DOESN'T
ACHIEVE THIS IS ESPECIALLY
IMPORTANT AND THERE.
MAY BE SOME I KNOW AND THAT AND
THE HEAVY DUTY SPACE AGAIN --
THERE'S A LOT OF POLICIES RE
REFER AT THAT REVOLVED AROUND
KIND OF PILOTS AND
DEMONSTRATIONS AS WELL AS
PRODUCTIONS AND AND CO
POLLUTANTS AND SO THERE'S A LOT
OF BENEFITS OF THOSE TYPES OF
THINGS BUT TRYING TO THINK ABOUT
HOW THOSE PROGRAMS.
CAN BE TARGETED TO ACHIEVE THOSE
GOALS ABOUT THE CHIEF YOU KNOW
EITHER A PROMOTE MET PROMOTING A
PARTICULAR TYPE OF TECHNOLOGY OR
ADVANCEMENT IN TECHNOLOGIES OR
REDUCING COPELAND'S IS IMPORTANT.
BUT THANK YOU IT SEEMS TO ME
THAT MIGHT BE WHERE ARE YOU DO
YOU REALLY.
TAKE A LOOK.
IS IT BETTER RECEIVED BY THE
PUBLIC AND CERTAINLY THE COST OF
LIVING ISSUES THAT.
ARE FORMERLY CONNECTED TO MUCH
OF THAT FROM THE THANK YOU
REPRESENTATION MICROBIAL SPRAY
LEARNED.
WHAT WE'RE WHERE DO YOU JUST?
WHEN YOU SEE THAT 38% NUMBER AND
THE SCOPING [inaudible]
PLAN [inaudible]
DOES THAT.
WHERE'S THAT SIT WITH YOU DOES
THAT DOES THAT SEEM OUTLANDISH
DOES IT SEEM DOABLE THE SEEM
REASONABLE --
WHAT WERE YOU ON THAT NUMBER?
IN I MEAN A I GUESS I HAVE A
COUPLE OF THOUGHTS ON IN --
ONE WE WE THINK RELYING ON
CARBON PRICING AS SORT OF A
SIGNIFICANT SOURCE OF EMISSION
REDUCTIONS MAKES A LOT OF SENSE
BECAUSE WE DO THINK IT IS THE
MOST COST EFFECTIVE STRATEGY --
I THINK THE OTHER THOUGHT IS --
AND THE KEY QUESTION IS WE ASK
IS IS THE PROGRAM SET UP IN A
WAY THAT WOULD KIND OF ACHIEVE
THOSE.
THOSE TYPES OF REDUCTIONS THAT
SORT OF 38% AND SO --
YEAH RIGHT THAT'S WERE SORT OF
QUESTIONS AROUND IS THE PROGRAM
ARE SORT OF THE LEVEL OF THE
CAPS OR JUST THE THE KIND
GENERAL SET UP OF THE PROGRAM IS
IT -- IN
LINE WITH KIND OF THE THE THE
TRUNK OF THE PILOT IS BINS WERE
CARVED OUT FOR IT.
IS IT YOUR SENSE THAT THE AIR BE
HAS ENOUGH TOOLS.
TO GET MORE AGGRESSIVE AND AND
AND AND KNOCK IT DOWN.
ADEQUATELY IMMEDIATE GIVEN ALL
THE POLITICAL PRESSURES THAT
EXIST.
BUT I THINK THAT --
THEY HAVE THE AUTHORITY TO MAKE
A WIDE VARIETY OF CHANGES TO THE
PROGRAM INCLUDING CHANGES.
THAT.
MIGHT IT JUST FUTURE COPS OR
MAYBE JUST SORT OF A SET OF
RULES RELATED --
TO FUTURE CAPS IF IF THE BANK OF
ALLOWANCES GETS TOO LARGE FOR
EXAMPLE --
MS IT ALMOST A SIGNAL THAT
THEY'RE THEY'RE GONNA GET MORE
AGGRESSIVE IS THAT IS THAT THE
MESSAGE IS BEING SENT BY THAT.
YOU KNOW THAT THAT'S PROBABLY A
QUESTION BUT I MEAN IT IS --
YOU KNOW IT'S IT'S A TOUGH
BALANCE AS WELL I MEAN YOU KNOW
GIVEN THE AMBITION OF THE GOALS
THERE'S YOU KNOW THERE'S NOT
INSIGNIFICANT CHANCE THAT YOUR
PRICES IN ORDER TO KIND OF IF IF
THESE TYPES OF JUDGMENTS ARE
MADE.
THAT PRICES COULD INCREASE
SIGNIFICANTLY ANSWERS ARE TRYING
TO MANAGE.
THE COSTS ASSOCIATED WITH THOSE
HIGHER PRICES IS DEFINITELY A
CONCERN AND SOMETHING THAT NEEDS
TO BE.
THOUGHT THROUGH CAREFULLY --
BUT AGAIN WE DO THINK SORT OF
YOUR FOLKS MISSIONS TARGETS BUT
THEN RELYING ON SNOW PRICE
CEILINGS AND AND SPEED BUMPS AND
OTHER THINGS LIKE THAT TO MANAGE.
AND COSTS IS IS REALLY THE BEST
WRITER SHE CRIME.
THANK YOU OTHER QUESTIONS FROM
MEMBERS.
NOW.
ALL RIGHT THANK YOU SO MUCH
REALLY APPRECIATE IT AND AND
VERY COMPREHENSIVE REPORT
[inaudible]
THE TURN [inaudible]
GET.
I OKAY WILL NEXT YEAR FROM TERRY
NICHOLS WHO WILL --
COME UP AND TALK TO US ABOUT THE
PATH.
LEADING FORWARD WE WERE ALL
EAGERLY ANTICIPATING HER REMARKS
IN -- COURSE
MISS NICHOLS IS THE CHAIR OF THE
CALIFORNIA RESOURCE SUPPORT.
YOU MAY RECEIVE WHEN YOU'RE
READY [inaudible]
GOOD MORNING [inaudible]
GOOD MORNING.
THANKS FOR INVITING ME THANK YOU
FOR RUSSIA QUOTING ME --
THIS MORNING AT THE BEGINNING OF
THIS HEARING --
IT WAS A REMINDER BUT ALL REALLY
INSPIRATION AYE YEAH RIGHT IT
WAS A GREAT --
HOPEFULLY --
SETTING OF THE STAGE FOR WHAT I
HOPE IS GOING TO BE.
OF A YEAR OF COLLABORATION AND
THINKING OF WHICH IN WHICH WE
CAN EXPAND UPON AND IMPROVE OUR
CURRENT PROGRAMS.
AND I THINK IT INDICATES AS YOU
CAN TELL THAT I HAVE A
PROPENSITY FOR THINKING OUT LOUD
BUT WHEN I DO.
IT'S IN THE DIRECTION OF TRYING
TO CONSTANTLY BE ASKING THE
QUESTION OF HOW WE CAN DO BETTER.
AND I APPRECIATE THE FACT THAT
THE MEMBERS OF THIS COMMITTEE
ARE DOING THE SAME THING.
AND SO --
I'M EXCITED ABOUT THE ABOUT THE
OPPORTUNITIES --
I DO WANT TO SAY THAT THE LA --
I'M SURE WE WILL AGREE WITH SOME
OF THEIR POINTS AND I KNOW WE
DISAGREE WITH OTHERS BUT THE I
THINK HE HAS LEFT OUT.
ONE ELEMENT OF THE BENEFITS OF
THIS PROGRAM TO CALIFORNIA AND
THAT IS THE REVENUE THAT HAS
BEEN COMING FOR THE LAST SEVERAL
YEARS FROM INTERNATIONAL
VISITORS.
AS WELL AS PEOPLE FROM OTHER
STATES TRIPPING THROUGH
CALIFORNIA TO LEARN WHAT WE'RE
DOING AND HOW WE'RE DOING IT I'M
BEING A LITTLE BIT FACETIOUS BUT
OF THE INTERNATIONAL LEADERSHIP
BUT THAT WAS REFERRED TO BY.
SENATOR Y. CASKEY IS A VERY REAL
[inaudible]
IT'S ALSO THINGS THAT WE DON'T
ENTIRELY KNOW HOW TO QUANTIFY
BUT TO THE EXTENT THAT OTHER
STATES OR OTHER SUBNATIONAL
JURISDICTIONS --
PICK UP ON THINGS THAT WE ARE
DOING WE ARE HELPING TO MOVE THE
NEEDLE AND A MUCH BIGGER WAY
THAN CALIFORNIA CAN DO A LOAN
AND AT A TIME WHEN.
AS WE ALL ARE AWARE OUR NATIONAL
GOVERNMENT HAS BECOME A LEADER
IN THE ANTI TERRORIST OUT ANTI
ACTION MOVEMENT ON BUT I BELIEVE
WE ALL AGREE IS.
THE SINGLE MOST PRESSING
ENVIRONMENTAL PROBLEM OF OUR
TIME -- I
THINK THAT'S AN ISSUE THAT IT'S
WORTH --
CONTINUING TO REMEMBER SO --
I WANT TO TALK A LITTLE BIT.
ABOUT THE APPROACH THAT WE'VE
TAKEN --
SINCE I REJOINED THE BOARD AND
TWO THOUSAND SEVEN AND WE
DEVELOPED THE FIRST SCOPING PLAN
UNDER AB.
THIRTY TO THE APPROACH THAT WE
HAVE TAKEN SENATE TARGET AND
THIS IS VERY SIMPLE THE WAY THAT
THE A. R. B. HAS APPROACHED ITS.
TASK IN THE CLEAN AIR ACT AS
WELL IS TO LOOK AT THE SCOPE OF
THE PROBLEM.
SET A TARGET IN TERMS OF NUMBER
OF TONS THAT NEED TO BE REMOVED
FROM THE AIR.
AND THEN DEVELOP A PLAN TO
REMOVE THOSE TONS --
THIS IS NOT THE WAY EVERYBODY
DOES THESE THINGS AND FOR
EXAMPLE OF ONE COULD --
IMAGINE A THERE'S A CARBON
PRICING PROGRAM THAT DID NOTHING
BUT PUT A PRICE ON CARBON
WITHOUT HAVING A TARGET AND YOU
WOULD ACHIEVE SOME REDUCTIONS BY
THAT.
BUT YOU WOULDN'T KNOW IF YOU
WERE CHEATING ENOUGH FOR TOO
MANY -- AND
YOU WOULDN'T BE TAKING ADVANTAGE
OF SOME OF THE OTHER TYPES OF
TOOLS THAT CAN BE USED --
WE HAVE HAD OUR PROGRAM --
EVALUATED AND HAVE TAKEN INPUT
FROM.
COMMITTEES AND BOARDS OF
ECONOMIC ADVISERS GOING TO THAT
FROM THE VERY BEGINNING.
AND ONE OF THE THINGS THAT THEY
THAT.
IF YOUR GOAL IS TO REDUCE A SET
NUMBER OF EMISSIONS THAT THE MIX
OF BANDAIDS AND INCENTIVES AND
PRICING THAT CALIFORNIA HAS USED.
IS PROBABLY THE MOST COST
EFFECTIVE WAY YOU COULD HAVE
GONE ABOUT ACHIEVING THAT GOAL.
WHO SAID THAT WHO THAT WAS SAID
BACK IN 200-010-2000 --
TWELVE WE HAD AN MRI AND
ECONOMIC ADVISORY COMMITTEE --
WE'VE HAD --
PEOPLE LIKE.
THAT NOW NOW MEMBER FOR THOSE
CASO BOARD DOES SEVEN POINTS
BEING AND OTHERS WHO'VE SERVED
AS ADVISERS TO THE PROGRAM OVER
THE YEARS.
AND THEY REPEATEDLY LOOKED AT
THESE I'LL BE HAPPY TO FURNISH
YOU WITH SOME.
QUOTES ARE CITATIONS ON THAT --
BUT I THINK WE ARE NOW AT A
POINT WHERE WE CAN SEE THAT
MOVING AHEAD TOWARDS OUR TWENTY
THIRTY AND TWENTY FORTY FIVE
GOALS.
WE NEED TO GO FURTHER AND WE
NEED A FASTER AND THAT'S TRUE
FOR CALIFORNIA'S GOALS IT'S ALSO
TRUE FOR THE WORLD'S GOALS THAT.
ARE NOT ENOUGH IS BEING DONE AND
NOW THE VERY SERIOUS THE FACTS
OF THE WARMING THAT'S ALREADY
TAKING PLACE AND WHAT'S ALREADY
BEEN BAKED INTO THE SYSTEM.
SO -- WE
HAVE TO LOOK AT THE ARRAY OF
TOOLS THAT WE HAVE AT OUR
DISPOSAL AND WHETHER THERE WERE%
USING ALL OF THEM AND WHETHER
THERE'S OTHERS THAT WE HAVEN'T
THOUGHT OF AND WHETHER WE CAN
TWEAK ANY OF THESE PROGRAMS TO
MAKE THEM BETTER.
CALIFORNIA'S PROGRAM IN ADDITION
TO THE CAP AND TRADE AND BY THE
WAY HOW MANY OF YOU KNOW THAT
THERE'S AN AUCTION GOING ON EVEN
AS WE SPEAK.
OKAY ONE PERSON WHO FOLLOWS IT
ON THE THE FACT THAT WE HAVE HAD.
QUARTERLY AUCTIONS AND FROM THE
BEGINNING OF THIS PROGRAM THAT
HAVE RAISED MILLIONS OF DOLLARS --
IS WELL KNOWN BUT THE FACT THAT
AN OPTION IS TAKING PLACE ON ANY
GIVEN DAY OR WHAT THE RESULTS OF
THAT AUCTION ARE.
SELDOM PERCEIVED BY THE PUBLIC
AND ACTUALLY WE THINK THAT'S A
GOOD THING OUT WITH OKAY IF YOU
KNOW BUT IT'S NOT A IT'S NOT
EVEN OKAY FOR ME TO ASK LIKE
WHAT OF THE BIDS LOOKING LIKE
WHAT WHAT'S COMING IN HOUSE IT
GOING.
THIS TAKES PLACE IN A COMPLETELY
SEALED ATMOSPHERE --
WE DON'T CERTIFY THE RESULTS OF
THE AUCTION UNTIL THERE'S AN
OUTSIDE MONITORING COMMITTEE
THAT SAYS THAT THE AUCTION WAS
CONDUCTED IN A FAIR.
WAY -- WE
HAVE NEVER ELATION OR INSIDER
TRADING OR OF THE THINGS
THAT BACK IN TWO THOUSAND EIGHT
WHEN WE FIRST STARTED TALKING
ABOUT CREATING A MARKET AND
ALLOWANCES WERE WHAT PEOPLE WERE
REALLY WORRIED ABOUT YOU KNOW
MARKETS WEREN'T LOOKING THAT.
GOOD BACK THEN AS A SOMETHING
THAT PEOPLE WOULD HAVE
CONFIDENCE IN WORKING FAIRLY AND
NOW WE FIND OURSELVES IN A
SITUATION WHERE INDEED THIS
MARKET HAS FUNCTIONED --
IN A CLEAN AND EFFECTIVE MANNER
AND I WANNA MAKE SURE THAT WE
CONTINUE TO DO THAT BUT THAT'S
ONE OF THE REASONS WHY --
I DON'T SPECULATE OF A LOUD
ABOUT CHANGES WE MIGHT BE
THINKING ABOUT MAKING TO THE
MARKET BECAUSE I DON'T WANT TO
SEND ANY SIGNALS --
IN ADVANCE OF A FORMAL
RULEMAKING OPEN PROCEDURE FOR
FEAR THAT --
THAT THAT MIGHT CAUSE A PROBLEM
SO -- IN
ADDITION TO THE MARKET OF COURSE --
WE ALSO HAVE AND THIS IS PERHAPS
THE FUNDAMENTAL.
BUILDING BLOCK OF THE ENTIRE
PROGRAM IN CALIFORNIA IS THE
HOUR OF VEHICLE PROGRAMS THE OUT
THE LOW CARBON OR THE HELP LEVEL
EMISSIONS AND ZERO EMISSION
VEHICLE PROGRAMS AT THE STATE
OPERATES.
OUT WHICH ARE UNDER THREAT.
AGAIN EVEN AS WE MEET HERE TODAY --
WE UNDERSTAND THAT THERE WILL BE
AN ANNOUNCEMENT COMING OUT OF
THE WHITE HOUSE THAT THEY INTEND
TO PROCEED FULL STEAM AHEAD ON
ROLLING BACK.
THE OBAMA ERA A FEEL OF AND WE
HEAR THIS IS NOT EXACTLY A
SURPRISE BUT THE ONLY THING
THAT'S A SURPRISE ABOUT IT IS
THAT THEY'VE.
APPARENTLY CHOSEN TO PUT OUT A
BIG BLAST AT CALIFORNIA TODAY
WHICH APPEARS TO BE PART OF A
CONTINUING SERIES OF A VOLLEY IS
THAT WE WILL BE SEEING --
COMING FROM WASHINGTON AND IT'S
IT'S VERY SAD --
WE HAVE --
THE SUSTAINABLE COMMUNITIES AT
PROGRAM SB.
THREE SEVENTY FIVE WHICH DOESN'T
OFTEN GET TALKED ABOUT BUT WHICH
IS A REALLY FUNDAMENTAL BUILDING
BLOCK OF OUR FUTURE AT HOUSING
AND DEVELOPMENT PROGRAMS THAT WE
THINK ARE GOING TO IN THE LONG
RUN.
MAKE OUR STATE MORE RESILIENT
AND ALSO.
REDUCE EMISSIONS --
AS WELL AS OUR RENEWABLE AT
PROGRAMS WHICH WE NOW KIND OF
TAKE FOR GRANTED BUT WHICH HAVE
INDEED.
REDUCED EMISSIONS AND AND
CERTAINLY MADE THE ELECTRICITY
SECTOR BY FAR THE LEADER IN
TERMS OF HAVING --
MOVE FORWARD ON ACHIEVING
GREENHOUSE GAS.
GOALS SO --
I I WANT TO EMPHASIZE THAT THE
PROGRAM IS BUILT ON A FOUNDATION
OF DATA THAT WAS DEVELOPED LONG
BEFORE AB THIRTY TWO EVEN PASSED
THAT.
THE STATE HAD BEGUN COLLECTING
GREENHOUSE GAS EMISSIONS DATA
FEEL USE DATA AND THAT WAS USED
IN TURN AS PART OF THE MANDATORY
REPORTING PIECE OF THE WHAT
BECAME THE CAP AND TRADE RULE.
AND WHICH HAS NEVER REALLY BEEN --
CONTESTED NOW IT ONLY COVERS THE
MAJOR EMISSIONS SOURCES THAT --
ARE AT COVERED UNDER THE CAP AND
TRADE PROGRAM BUT THAT IS A VERY
LARGE PERCENTAGE OF THE SOURCES
THAT ARE OUT THERE.
AND WE THINK THAT --
THAT PLUS OF RIGOROUS ANALYSIS
WHICH AS HAS BEEN SUBJECTED --
TO REVIEW AND AND IS.
SOUGHT INPUT FROM MANY DIFFERENT --
TO IS A GOOD START BUT AGAIN --
WE WANT TO DO AND I THINK WE
NEED TO DO MORE TO DRIVE DOWN
EMISSIONS AT THE SAME TIME TO
KEEP OUR ECONOMY.
OF HUMMING ALONG --
WHENEVER I GET INVOLVED IN --
HEARING ARE TALKING ABOUT.
THE POTENTIAL.
FOR OVER ALLOCATION IN THE
MARKET OR THE NEED --
TO USE PRICES MORE AGGRESSIVELY
THAN WE'RE DOING NOW --
I THINK ABOUT THE YELLOW.
FAST IN PARIS AND I THINK ABOUT
THE MANY TIMES IN WHICH WE HAVE
BEEN ON THE VERGE OF HEARING
THAT ENERGY PRICES IN CALIFORNIA
WORD GOING TO DRIVE PEOPLE.
AWAY THAT THEY ARE GOING TO DO
HARM TO OUR ECONOMY --
THAT HAS NOT HAPPENED AND WE'RE
VERY PROUD OF THE FACT THAT
WE'VE BEEN ABLE TO MANAGE THIS
ARRAY OF DIFFERENT PROGRAMS.
IN A WAY THAT HAS BOTH KEPT US
ON TRACK IN TERMS OF EMISSIONS
REDUCTIONS.
AND NOT DRIVEN ORDINARY PEOPLE
TAKE TO THE STREETS TO COMPLAIN
ABOUT HOW WE'RE DEPRIVING THEM
OF THE ABILITY TO GET TO WORK --
IF IT IS A COMPLEX SYSTEM AND
ONE OF THE REASONS WHY I DON'T
THINK WE'LL EVER ACHIEVE.
THE LEVEL OF PERFECTION THAT --
MIGHT BE DESIRABLE IN TERMS OF
BEING ABLE TO ANALYZE THE
EFFECTS OF ALL OUR POLICIES IS
THAT WE LIVE IN A VERY
COMPLICATED ECONOMY CALIFORNIA
HAS A VERY COMPLEX ECONOMY AS WE
IT REPEATEDLY I TOLD --
BUT AT THE SAME TIME WE LIVE IN
A POLITICAL WORLD WHERE WE KNOW
THAT --
THERE ULTIMATELY THE PUBLIC WILL
ONLY SUPPORT BUT THEY THINK THEY
CAN LIVE WITH AND WE HAVE TO
CONSTANTLY KEEP ASKING OURSELVES
IF WE'RE MAKING THE PROGRESS
THAT WE HOPE TO MAKE.
RESPONDING TO THE DESIRE THAT WE
HEAR FROM THE PUBLIC TO ADDRESS
GLOBAL WARMING AND AT THE SAME
TIME NOT DOING IT IN A WAY THAT
MAKES IT IMPOSSIBLE FOR ANYBODY.
TO TO GET TO WORK SOUTH.
AT THE FOCUS LOW NOW
INCREASINGLY HAS TO BE ON THE
TRANSPORTATION SECTOR BECAUSE AS
YOU HEARD IT ACCOUNTS.
FOR NEARLY HALF OF THE EMISSIONS
AS WELL AS BEING A LEADING CAUSE
OF AIR POLLUTION AND A
CONGESTION AND OTHER PROBLEMS
THAT WE HAVE IN CALIFORNIA.
THESE EMISSIONS FROM THE SECTOR
ARE RISING DESPITE INCREASES IN
FUEL EFFICIENCY AND VEHICLES AYE
WHICH WILL CONTINUE DESPITE WHAT.
MADE TURNED OUT TO BE A ROLE
THAT SIMPLY BECAUSE THE INDUSTRY
IS ON TRACK TO CONTINUE TO MAKE
IMPROVEMENTS IN MANY CATEGORIES
AND AND THEY HAVE TO IF THEY'RE
GOING TO SURVIVE IN A IN A
GLOBAL MARKET --
BUT WE ACTUALLY HAVE TO START
ADDRESSING SERIOUSLY --
HOW COMMUNITIES AND
TRANSPORTATION SYSTEMS ARE
PLANNED AND FUNDED AND BUILT?
THE GOVERNOR HAS MADE IT CLEAR
THAT THIS HAS TO INCLUDE LOOKING
AT THE CONNECTION BETWEEN
TRANSPORTATION AND HOUSING.
WE NEED REAL ACCESSIBLE
AFFORDABLE HOUSING OPTIONS
LOCATED IN PLACES WHERE PEOPLE
CAN GET TO WORK SCHOOL AND GO
ABOUT THEIR LIVES WITHOUT
SPENDING HOURS IN THEIR CARS.
BECAUSE THEY HAVE NO REALISTICALTERNATIVES.
WERE SLATED TO SPEND MORE THAN
ONE TRILLION DOLLARS UNDER
CURRENT SATE TRANSPORTATION
FUNDING PLANS.
WE SHOULD BE MAKING INVESTMENTS
THAT WILL INCREASE CLEAN
MOBILITY OPTIONS CLEAN UP IN
SUPPORT LOW AND ZERO EMISSIONS
MOVEMENT OF PEOPLE AND GOODS.
AND HELP BUILD COMMUNITIES THAT
ARE TRULY SUSTAINABLE.
AS INDICATED IN THE SP ONE FIFTY
REPORT THAT WAS RELEASED LAST
NOVEMBER.
WE NEED TO BE LOOKING AT A RANGE
OF WAYS TO CUT SINGLE OCCUPANCY
VEHICLE TRAVEL INCLUDING BY
PILOTING INNOVATIVE APPROACHES
TO INCREASE MOBILITY OPTIONS
ACROSS.
DIFFERENT TYPES OF COMMUNITIES
AND WE NEED TO STRENGTHEN OUR
INCENTIVE PROGRAMS TO GET
CALIFORNIANS INTO LOW AND ZERO
EMISSION VEHICLES.
WE NEED TO BE PUSHING A RIDE
CHER COMPANIES LIKE LIFT AND
UBER TO TRANSITION THEIR FLEETS
TOWARDS ZERO EMISSIONS.
WE NEED TO B. CHARTING A PATH TO
REACH THE GOVERNOR'S STATED GOAL
OF ZERO DIESELS BY.
TWENTY THIRTY SO THAT'S LOT OF
WORK -- IN
FRONT OF US RIGHT NOW AND
THERE'S NO QUESTION THAT WOULD
BE HELPFUL IF WE COULD --
COLLECT AND AND ANALYZE ALL OF
THE POLICIES THAT WE HAVE IN
THIS AREA AND TO BE COMMIT
OURSELVES TO FINDING MORE
EFFECTIVE WAYS TO ACHIEVE
RESULTS.
IN ADDITION THE TRANSPORTATION
THOUGH ACHIEVING OUR TWENTY
THIRTY AND TWENTY FORTY FIVE
TARGETS IS GONNA RQUIRE GREATER
SUSTAINED ACTION ACROSS THE
ENTIRE ECONOMY.
WHILE THE ELECTRIC POWER SECTOR
HAS MADE HUGE STRIDES WE NEED TO
CONTINUE TO STAY ON TRACK
TOWARDS ARE 1100% RENEWABLE
ENERGY GOAL.
AND CONTINUE PUSHING AHEAD ON
ENERGY EFFICIENCY AND CLEAN
ENERGY STORAGE WE NEED TO BE
DEVELOPING AND IMPLEMENTING
STRATEGIES TO DE CARBONIZED OUR
BUILDINGS.
WE NEED TO BE A TURNING TO OUR
NATURAL AND WORKING LANDS LIKE
FORESTS AND FARMS AND TURNING
THEM INTO EMISSIONS THINKS.
THAT WILL SUCK CARBON OUT OF THE
ATMOSPHERE.
WE NEED TO BE IMPLEMENTING
STRATEGIES THAT WILL BOTH CAUGHT
FIRE RISKS AND UTILIZE BIOMASS
RESOURCES FROM OUR FORESTS AND
WORKING LANDS IN INNOVATIVE WAYS.
LIKE LOW CARBON FUELS AND
PRODUCTS THAT WILL PROVIDE A
REAL AND LASTING ECONOMIC
OPPORTUNITIES IN RURAL
COMMUNITIES.
WE NEED TO KEEP SLASHING
EMISSIONS OF THE MOST POTENT AND
FAST ACTING SUPER POLLUTANTS
LIKE METHANE BLACK CARBON.
AND HYDROPHOBIC HYDROCHLORIC
CARBONS AND WE HAVE TO KEEP
INVESTING IN THE KINDS OF
RESEARCH AND INNOVATION THAT
WILL SPAWN THE NEXT GENERATION
OF CLEAN TECHNOLOGIES THAT WE'RE
GOING TO NEED. TO DE CARBONIZED
ALL OF THESE THINGS --
WE BELIEVE ARE WITHIN THE
POSSIBILITY AND INDEED WILL BE
INTERESTING AND I MEAN
INTERESTING AND THE MOST HEY --
FOR US TO BE ENGAGED IN AND
PEOPLE LOOK TO CALIFORNIA TO
COME UP WITH INNOVATIVE IDEAS IN
THESE IN THESE AREAS --
FINALLY OF COURSE WHAT WE DO
HERE IS ONLY A SMALL PART OF
GLOBAL EMISSIONS.
BUT WE RECOGNIZE IS A CRITICAL
PART OF THE GLOBAL ACTION NEEDED
SO AS WE TURN UP THE DIAL HERE
WE ALSO NEED TO CONTINUE.
WORKING WITH PARTNERS IN OTHER
STATES PROVINCES AND COUNTRIES
AROUND THE WORLD.
WE APPRECIATE THE LEGISLATORS
WHO HAVE MADE THE TREK TO
GLAMOROUS PLACES LIKE KATOWICE
AS WITH THIS TOO AS WELL AS TWO
OTHER.
POINTS AROUND THE GLOBE --
BUT IT'S ALSO IMPORTANT I THINK
THAT WE CONTINUE --
TO AT PAY ATTENTION TO HOW ARE
PROGRAMS ARE BEING INTERPRETED
AND TAKEN UP BY OTHER PEOPLE AND
WE NEED.
TO BE OUT REPORTING BACK TO YOU
AND TO THE PUBLIC ON SOME OF
THAT.
COLLABORATING WITH OTHER
JURISDICTIONS REALLY CAN HELP US
TO COST EFFECTIVELY SCALE LOW IN
ZERO CARBON TECHNOLOGIES THAT WE
CAN UTILIZE TO CUT EMISSIONS
HERE AND THAT WILL HELP US TO
TRANSITION. TO A CLEAN ENERGY
ECONOMY SO.
NO WE'VE BEEN AT THIS FOR MORE
THAN A DECADE --
AND THE ADMINISTRATION OBVIOUSLY
BUT ALSO LOCAL GOVERNMENT
AGENCIES AND BUSINESSES AND
ORGANIZATIONS AND CITIZENS UP
AND DOWN THE STATE WHO HAVE COME
FORWARD WITH SOLUTIONS AND
PARTICIPATED.
IN A VARIETY OF DIFFERENT KINDS
OF ACTIVITIES AND WORKSHOPS
AIMED AT PROMOTING --
LOWER CARBON LIFE IN CALFORNIA --
IT'S DELIVERED A RANGE OF
BENEFITS BEYOND JUST THE
REDUCTIONS IN GREENHOUSE GAS
EMISSIONS --
BUT AGAIN THERE'S MORE TO BE
DONE SO --
WE ARE LOOKING FORWARD TO
COLLABORATING WITH YOU AND WITH
THAT I THINK I'LL JUST.
ADDRESS ANY QUESTIONS THAT YOU
MAY HAVE FOR ME.
I HAVE A LIST OF QUESTIONS THAT
YOU COULD ASK ME RIGHT HERE.
WE WE WE GET A COPY THAT --
AS FEDERAL CASKEY.
I WANT TO GO BACK AND REVISIT
THE ORDINARY PEOPLE YELLOW FESS
OUTRAGE BECAUSE YOU KNOW WHEN I
GOT ELECTED IN.
TWENTY TEN THE PRICE OF GASOLINE
IN CALIFORNIA WAS. THREE DOLLARS
AND EIGHTY CENTS A GALLON.
IT'S TO THE WE'VE DONE SB ONE
THAT INCREASE THE PRICE OF
GASOLINE WITHIN CAP AND TRADE
THE SKY WAS GONNA FALL AND
NOTHING HAS HAPPENED.
ALL OVER THE OPINION THAT THAT
IF WE HAD A ANOTHER CARBON TAX
AND OIL SEVERANCE TAXES SOME.
A SUCH THAT THE ORDINARY MARKETS
SPREAD THAT PRICE AROUND IT'S
NOT JUST CALIFORNIA CONSUMERS.
THE UNITED STATES ITS MORNING
THE CATION OF WHAT HAPPENS
DESTRUCTIVELY IN VENEZUELA OR
WHAT WOULD HAPPEN.
IF WITH THE WITH THE SAUDIS
VERSES YOU KNOW OUR WELL MEANING
PROGRAMS DO YOU HAVE AN OPINION
ABOUT.
THE SKY IS FALLING AND AND THIS
THE THE SORT RELATIVELY STABLE
PRICE OF THE FUEL IN THE LAST
DECADE WELL IT CERTAINLY IF YOU
WERE LOOK --
ACROSS TEN YEARS THE PRICE HAS
BEEN RELATIVELY STABLE IF YOU
LOOK ON A WEEK TO WEEK OR MONTH
TO MONTH BASIS IT GOES UP AND
DOWN A LOT AND CALIFORNIA IS.
KNOWN FOR HAVING EVEN SOMEWHAT
MORE VOLATILE GASOLINE PRICES
THAN OTHER PLACES DO BECAUSE WE
HAVE SEASONAL CHANGES IN THE
PLANS THAT ARE SOLD IN
CALIFORNIA --
IN A IDEA I NO LONGER GO TO A
GAS STATION I'M HAPPY TO SAY AS
I WAS ABLE --
TO BUT MYSELF INTO A OF ELECTRIC
VEHICLES NOT TOO LONG AGO BUT I
DO HEAR A LOT FROM PEOPLE ABOUT
THE PRICE OF GASOLINE AND I KNOW
THAT.
WHEN AN INDIVIDUAL COMMUNITY
SEES A SPIKE IN GASOLINE?
PEOPLE REACT AND THERE'S DOWN
FOR MAINTENANCE OR THERE'S SOME
DISRUPTIVE WEATHER EVENT THAT
CAUSES THE PRICES TO GO UP BY
MORE THAN A PENNY OR TWO A
GALLON.
SOMETIMES EVEN AT THAT LEVEL YOU
YOU HEAR A PUBLIC RESPONSE NOW
IT LEVELS OFF GENERALLY AND IT
HAS SO YOU KNOW AFTER WE'VE AB
YELLED AFTER TAT MEDIA DESIRE
TO DO SOMETHING AND AFTER YOU
APPOINT A COMMITTEE TO SEE
WHETHER THERE WAS.
ANY TRUST VIOLATION OR OTHER OF
MANIPULATION IN THE MARKET IT
USUALLY TURNS OUT THAT --
PRICES YOU KNOW HAVE SETTLED
BACK DOWN AGAIN AND NOTHING
HORRIBLE HAS HAPPENED --
WE NEED TO TALK ABOUT THE FUTURE
OF THE PETROLEUM INDUSTRY IN
CALIFORNIA THAT IS A WHOLE
CONVERSATION THAT --
AS YOU WELL KNOW --
THERE'S A STRONG.
MOVEMENT OF PEOPLE WHO WANT TO
SEE -- OIL
PRODUCTIONAND REFINING --
PHASED OUT OR BAND AND OUR STATE --
THERE'S ALSO PEOPLE WHO.
FEEL THAT --
LIVING NEAR.
TO A BURDEN ON LOW INCOME
COMMUNITIES THAT SUFFER
OFTENTIMES FROM WORST AIR
POLLUTION THAN OTHER PARTS OF
THE STATE SO IT BECOMES AN
ENVIRONMENTAL JUSTICE ISSUE AS
WELL. FOR THE PAST YEARS --
I THINK WE'VE BEEN OPERATING
UNDER A POLICY OF TRYING TO
REDUCE DEMAND AS A WAY TO REDUCE
THE IMPACT OF OIL PRODUCTION AND
OIL ACTIVITY IN CALIFORNIA.
BUT I BELIEVE THAT WE COULD GET
TO A POINT WHERE WE HAD ACHIEVED
OUR ZERO EMISSION GOALS.
AND THEY WOULD STILL BE AN OIL
AND GAS INDUSTRY IN CALIFORNIA
BECAUSE WE HAVE WE HAVE THE
RESOURCES AND WE HAVE THE
REFINING CAPACITY HERE.
AND THEY WOULD SELL THE PRODUCT
IN INTERNATIONAL COMMERCE ITSELF
THE LEGITIMATE COMMERCIAL
ACTIVITY RIGHT --
IS SO IF WE ARE GOING TO BE
THINKING ABOUT THAT.
WHOLE SECTOR IT DESERVES TO BE
THOUGHT ABOUT IN A IN A MORE
COMPREHENSIVE WAY I THINK THAT'S
A LONG ANSWER YOUR QUESTION BUT
THE BOTTOM LINE IS THAT --
YES THERE PROBABLY IS ROOM TO
RAISE THE PRICE OF GASOLINE TO
CONSUMERS BUT IT HAS TO BE DONE
SOMETHING THAT'S DONE VERY
THOUGHTFULLY AND CAREFULLY.
GOT A I GUESS THE THE FOCUS WILL
BE ON THIS MEDIUM TERM GOAL OF
TRYING TO REDUCE OUR EMISSIONS
AND AND WE'VE SEEN THE NUMBERS
THAT YOU'VE RELEASED ABOUT THE
INCREASED VEHICLE MILES TRAVELED
AND POLLUTION GOING UP IN THIS
SECTOR WIENER UNDERSTAND PEOPLE
ARE WORK AND THEY'RE ALL ALL.
THESE OTHER THINGS AND AT THE
WHAT'S ANOTHER MARK THE SENT.
I'M YOU INDICATED --
THE GOVERNOR'S DESIRE TO HAVE
THAT NEXUS BETWEEN
TRANSPORTATION HOUSING AND I
THINK WE'VE DONE THAT IN THE CAP
AND TRADE PROGRAM.
PEOPLE CONTINUE TO FORGET THAT
THE 35% OF THE MONEY GOES TO
HOUSING OR TRANSIT OR RAIL
CONNECTIONS AND OF THE 60%
THAT'S DESIGNATED YOU KNOW IF IF
THE WHITE HOUSE KEENLY THREE
POINT.
TWO OPTION NUMBER IS CORRECT
THAT'S OVER A BILLION ONE THAT
GOES TO HOUSING AND
TRANSPORTATION.
GOING TO THE LEGISLATURE'S 40%
DISCRETIONARY FUNDS IS THAT DO
YOU THINK THAT WE NEED TO DO
MORE IN THAT MEDIUM VERSUS THE
OTHER WE'LL GET TO THE CLERK AT
THE LOW CARBON FUEL STANDARDS
ALL THE OTHER --
PROGRAMS THAT WE'VE WE'VE BEEN
IS FUNDING IN THE END OF THIS
YEAR'S WELL --
IDEA I THINK THE GOVERNOR'S
BUDGET PRESENTS A PRETTY CLEAR --
VIEW OF HOW HE WOULD LIKE TO SEE
THOSE FUNDS ALLOCATE THIS I'M
NOT GONNA TRY.
TO REDO THAT HERE --
BUT WHAT I WOULD SAY IS THAT --
FROM CARBS PERSPECTIVE THE NEED
TO CONTINUE TO TURN OVER THE
FLEETS.
OF BOTH LIGHT DUTY VEHICLE THE
TRANSPORT SECTOR OF A HEAVY DUTY
VEHICLES OUT REMAINS VERY HIGH
ON THE LIST OF SHORT AND MEDIUM
TERM THINGS THAT NEED TO BE DONE --
BECAUSE THOSE VEHICLES IN THE
MARKET ARE GONNA BE USED ALL THE
TIME OF WHETHER IT'S A LIFT OR
pTAKING.
GOODS FROM OUR PORTER THE
AIRPORT AND DISTRIBUTING THEM TO
PLACES AROUND THE COUNTRY --
THESE VEHICLES US STAY ON THE
ROAD FOR DECADES AND THEY ARE
BECOMING AN INCREASINGLY LARGE
SHARE OF OUR CARBON FOOTPRINT AS
WELL AS OUR AIR POLLUTION
PROBLEMS SO --
I DON'T THINK YOU CAN SAY --
WE'VE SPENT TOO MUCH ON THOSE
TYPES OF PROGRAMS IN FACT I
THINK WE'VE DONE A PRETTY GOOD
JOB OF CREATING A MIXOF OF
DEMONSTRATION PROJECTS FUNDING
NEW TECHNOLOGIES THAT ARE.
CONTINUING TO BE A TO APPEAR ON
THE SCENE AND ALSO --
MAKING IT POSSIBLE FOR FLAYED
SEND AN INDIVIDUALS TO TO
PURCHASE THESE CLEANER VEHICLES
A HOUSING PROBLEM HOWEVER AND
DEALING WITH CALIFORNIA'S --
CHRONIC SHORTAGE OF HOUSING CAP
AND TRADE AN APPROPRIATE SOURCE
OF BUT MY UNDER IT'S NOT THE
ONLY --
SOURCE THAT OF PEOPLE CAT OR
SHOULD BE LOOKING AT THAT NEXUS
BETWEEN GREENHOUSE GAS
REDUCTIONS AND WE GETTING ON
LET'S GO TO I HAD BEFORE GOING
TO THE COP. TWENTY FOR IN A CUT
OF PIZZA I WAS IN NORWAY AND I
ACTUALLY WENT TO A WASTE
GENERATION --
INCINERATION PLANT THAT WAS
PUTTING ON A CARBON
SEQUESTRATION OF CARBON CAPTURE
MANDATE THERE NO WE CHANGED OUR
BUILDING YOU KNOW IT'S THIS IS
ONE OF THE UNTHINKABLE CERTAIN
TALK BULLS AND CALIFORNIA
TALKING ABOUT CONSIDERATION.
BUT I ACTUALLY DID IT AT THAT
CHAIRMAN ALLEN'S FIRST --
MEETING IN EQ.
WHAT'S THE POTENTIAL CALIFORNIA
THIS IS A ONE OF THESE THINGS
THAT PEOPLE WILL SAY GIVEN THE
TECHNOLOGY AND GIVEN OUR DESIRE
TO SHOW THE WORLD HOW WE CAN DO
THAT WE JUST SIT AND LESS.
LET OUR LANDFILLS ROCKED AND AND
LET THINGS TO DISINTEGRATE AND
WE DON'T TALK ABOUT EVEN WITH
THE BEST RECYCLING PROGRAMS THAT
WE HAVE ALL THE MONEY ALL THE
ALL THE SHORT TERM AND LONG TERM
EMISSIONS THAT ARE TURN.
OCCURRING AT OUR LANDFILLS RIGHT
NOW AND IF THAT'S A IS
APPROPRIATE INVESTMENT.
AGAIN TO SHOW THE WORLD THAT
THEY SHOULD BE DOING THAT ALSO.
SO CALIFORNIA ACTUALLY DOES A
PRETTY GOOD JOB OF CAPTURING THE
METHANE FROM OUR LANDFILLS --
WE DON'T ALWAYS RE UTILIZE IT IN
A WAY THAT SAYS --
PROGRESSIVE OR IS AB.
AS CLEAN AS IT MIGHT BE AND WE
DO NEED TO DEMONSTRATE OTHER
THINGS YOU CAN DO WITH METHANE.
I IN GENERAL BECAUSE THERE'S A
LOT OF IT OUT MENTIONED EARLIER
FROM NOT JUST THE LANDFILLS BUT
FROM --
TREES AND OTHER VEGETATION
THAT'S ARRIVING ON ON LAND AND
SO FORTH AND PUTTING THAT TO
WORK IN A IN A WAY THAT WILL
GENERATE --
JOBS AND GENERATE PRODUCTS IS A
VERY HIGH PRIORITY --
IN THE SHORT LIVED CLIMATE
POLLUTANTS PLAN THAT INCLUDES --
DERRY DIED JESTERS AND USING THE
POTENTIAL FOR USING THE GAS
THAT'S GENERATED FROM THOSE --
TO POWER AGRICULTURAL EQUIPMENT
AS YOU KNOW JUST BEGINNING TO
REALLY BE.
INVESTIGATED AND AS I MENTIONED
IN MY REMARKS --
WE SEE THIS AS AN AREA.
FOR RURAL ECONOMIC DEVELOPMENT
THAT HAS A LOT OF BENEFITS
ASSOCIATED WITH THAT.
THE TECHNOLOGY FOR GETTING
CARBON OUT OF THE AIR IS STILL
PRETTY MUCH IN THE R. D. AND D.
STAGE THERE ARE COMPETING IDEAS
OUT THERE THEIR PRODUCTS THAT
PEOPLE ARE ARE WORKING ON AND
OUT WE SHOULD BE.
TAKING IT NG DEMONSTRATION ON
THESE ARE AT THE END OF IN
CALIFORNIA WHICH WE HAVE NOT
PAID AS MUCH ATTENTION TO BUT
MANUFACTURING WHETHER IT'S CLASS
PLANTS OR CEMENT. FOR EXAMPLE
PROVIDE OPPORTUNITIES TO BE
DEMONSTRATING A WAYS IN WHICH
YOU COULD CAPTURE AND RE USE --
CARBON FOR BENEFICIAL PURPOSES
THE IS A REALLY HOT AREA --
FOR ENTREPRENEURS AND AND
INVENTORS RIGHT NOW AND AND
HOPEFULLY WE CAN HELP PROVIDE
SOME.
OF THE PLACES WHERE WE CAN TEST
THESE THINGS OUT.
IN AND ONE FINAL QUESTION ON OUR
ACHIEVING THE SB THIRTY TWO
GOALS WE'VE TALKED PREVIOUSLY
ABOUT THE CAP AND TRADE PROGRAM
HAVE TO PROVIDE A SMOOTH
TRANSITION.
YOU KNOW THE IDEA THAT WE DIDN'T
WANT TO YOU KNOW NOT
WITHSTANDING SB SEVEN SEVEN FIVE
WHICH WITH THE SET.
RAILS AND AND AND AND CAPS
PUTTING PUTTING THAT ASIDE FOR A
MINUTE.
WE ALWAYS NEED TO READJUST.
OUR NUMBERS GIVEN THE NEW IF
RICE HAVE AN OPPORTUNITY WITH
USED TO SAY NOW WHAT DO YOU DO
WE LOOK AT THE THE IF WE SET A
INCREASE A FLOOR EARLIER THAT --
RATHER THAN LATER WHEN IT SEEMS
LIKE WE'RE NOT GOING TO MAKE IT
THAT SEEMS TO SEND THE SIGNAL TO
THE MARKET OF A SMOOTHER
TRANSITION THE PAIN IS COMING
BUT IT'S GOING TO BE SPREAD OUT
OVER A DECADE VERSES.
THE LAST YEAR'S WHAT IS YOUR
THINKING ON THAT AS WE'VE GOTTEN
THESE NEW NUMBERS HAVE COME IN
AND STAFF THIS WONDERFUL JOB
SAYING.
NOT ALWAYS QUANTIFIABLE RIGHT
MMHM.
OF WELL IT IT IS AN ISSUE THAT
WE ARE STUDYING AS PART OF
PUTTING TOGETHER THE NEXT
SCOPING PLAN --
WE HAVE NOT COME UP WITH ANY --
DEFINITIVE --
RESPONSE YET --
TO BUT WE'RE ALSO NOT SAYING THE
PROGRAM IS PERFECT AS IT IS AND
SHOULD CONTINUE THAT EVER HAVING
ANY CHANGES MADE IT AND I THINK
WE'RE PROBABLY GOING TO BE
LOOKING AT TO ANNUAL.
ADJUSTMENTS TO THE PROGRAM'S
OPERATION.
NO MATTER WHAT --
IN TERMS OF MAKING AND ON A
PERCENTAGE BASIS YOU KNOW X.
AMOUNT OF THE REDUCTION SHOULD
COME FROM THE CAP AND TRADE
PROGRAM VERSUS WHATEVER.
IT IS OF YOU KNOW AT THE MOMENT --
IS THAT IS SOMETHING THAT AS A
POLICY.
COULD BE DONE I THINK WHAT WE
NEED TO DO IS TO LOOK AT IT IN
THE CONTEXT OF THIS MIX OF
MEASURES AND INCENTIVES THAT I
WAS TALKING ABOUT EARLIER TO TRY.
TO KEEP AS MUCH AS POSSIBLE --
TO A TO A PROGRAM WHERE WE CAN
GET WHERE WE NEED TO GO WITH
MINIMUM COST AND MAXIMUM.
SIDE BENEFITS I MEAN THAT'S WHAT
ANYBODY WOULD LIKE TO SEE HAPPEN
RIGHT BUT I DON'T THINK WE KNOW
YET WHAT THE RIGHT ANSWER AS TO
ACHIEVING THAT PERFECT MIX THAT
THE ALTERNATIVE IS JUST.
IF WITH IF IT DOESN'T SEEM LIKE
WE'RE GOING TO DO THAT AND THIS
IS THE PURPOSE OF THE HEARING IS
TO ACHIEVE THOSE GOALS THEN
WE'RE STUCK WITH COMMAND CONTROL.
THAN THAT IF YOU DON'T LIKE
ALTERNATIVE A THEN YOU REALLY
DON'T LIKE A ALTERNATIVE BE IF
WE'RE TALKING ABOUT DESTRUCTIVE.
TO THE BUSINESSES AND SAYING YOU
THOU SHALL DO THAT SO THAT'S
YOUR CHARGE AS CHAIR.
THANK YOU THANK YOU.
THANK YOU MISTER FOR THE
PRESENTATION --
AND I APPRECIATE YOUR
RECOGNITION THAT --
SPIKES AND GASOLINE PRICES CAN
PROVOKE.
A LOT OF ANGER AND I A REPRESENT
A LOT OF LOW INCOME PEOPLE IN
THE EASTERN.
WHEN WE SEE THESE PRICE
INCREASES PEOPLE GET TAKE OFF
AND -- THE
VOLUME OF EMAILS AND TELEPHONE
CALLS TO OFFICE --
SIGNIFICANTLY INCREASE --
YOU KNOW.
IT WAS MENTIONED THAT --
IN A CALIFORNIA CAN'T DO IT
ALONE YOU KNOW WE CAN CONTROL
ABOUT 1% OF THE EMISSIONS
CONTROLS OF OF THE GLOBE WE NEED
WE NEED COOPERATION FROM FROM
OTHER COUNTRIES --
BUT IT'S BEEN SHOWN TO OUR
POLICIES THAT.
THE COST OF FUEL ELECTRICITY AND
HOUSING TRANSPORTATION CAN BE
IMPACTED.
STATE SENATOR --
ACOSTA USED --
ASSERTION THAT THE PRICE OF
GASOLINE HASN'T --
INCREASED --
SIGNIFICANTLY OVER THE PAST TEN
YEARS IF YOU LOOK AT THE PRICE
AND MAYBE EVEN AT AND FACTOR
INFLATION BUT WE DON'T TAKE INTO
CONSIDERATION IS --
SUPPLY AND DEMAND --
WE ARE NOW A OIL EXPORTER
MONAURAL IMPORTER AND A LOT OF
IT HAS TO DO BECAUSE OF FRACKING
NOT ONLY WITHIN CITY CALIFORNIA
BUT THROUGHOUT THE THROUGHOUT
THE COUNTRY --
PARTICULAR THE WESTERN STATES --
BUT WE HAVE SEEN --
PROBLEMS IN IN OTHER COUNTRIES
ONTARIO CANADA WHICH I THINK YOU
MIGHT HAVE A LITTLE TOO A LITTLE
BIT THAT --
THEY WITHDREW FROM THE CAPITATE
PROGRAM BECAUSE OF THE THE
NEGATIVE PUBLIC PRESSURE AND WE
SEE AN AWESOME VIOLENT PROTESTS
AND IN FRANCE.
AS A RESULT OF HIGHER PRICES --
WHILE OUR CITIZENS IN CALIFORNIA
HAVE AND MARCHED IN THE STREETS
BECAUSE OF HIGH ENERGY.
COSTS WE HAVE SOME OF THE
HIGHEST ENERGY COSTS AND IN THE
COUNTRY AND 53% OF THE CITIZENS
IN A RECENT POLL JUST SAID THAT
THEY ARE CONSIDERING.
LEAVING CALIFORNIA BECAUSE THE
COST OF LIVING HERE IS.
IS SO EXPENSIVE SO --
WHILE WE SET A GOOD EXAMPLE HERE
AND UNDER UNDER YOUR LEADERSHIP
YOU YOU HAVE BEEN --
TAKING AB THIRTY TO SB.
THIRTY TWO TO THE AT THE PROPER
LEVELS AND WERE SAYING THE
OPTIONS THAT ARE SOMEWHAT
SUCCESSFUL --
HOW DO WE COMBAT THESE OTHER?
COUNTRIES AND SEE THESE HIGHER
COSTS AND ARE TAKING A STEP BACK
AS WE ATTEMPT.
TO HARMONIZE THE THE WORLD --
THAT'S A BIG AND COMPLICATED
QUESTION AND I'M.
NOT GONNA TRY TO ANSWER FOR
EVERY PLACE BUT ONE THING I
WOULD SAY IS THAT.
I THINK YOU HAVE TO RECOGNIZE
THAT --
ENERGY MANDATE AND IT IS GOING
TO CONTINUE AND AND AND THAT'S A
GOOD THING THAT AS OUR STANDARDS
OF LIVING CONTINUE TO RISE
AROUND THE GLOBE.
PEOPLE WANT WHAT WE HAVE IN THIS
COUNTRY IN TERMS OF APPLIANCES
AND AIR CONDITIONING AND IN
THEIR MANY PLACES IN THE WORLD
THAT.
WON'T BE LIVEABLE --
WITHOUT SOME OF THESE BENEFITS --
CALIFORNIA CAN BE A NET EXPORTER
OF SOME OF THE TECHNOLOGIES THAT
WILL ALLOW THAT TO HAPPEN.
IN A WAY THAT DOES NOT INCREASE
EMISSIONS AND HOPEFULLY ALLOWS
US TO YOU KNOW CONTINUE TO EXIST --
IN.
LITIF SAFETY --
AS A PLAN AT AND SO THAT'S THE
TASK I THINK THAT WE NEED TO BE
LOOKING AT IT'S A IT'S A MORE.
COMPLICATED IN SOME WAYS BUT IT
ALSO RECOGNIZES THAT DIFFERENT
PLACES A START FROM DIFFERENT
STARTING POINTS AND THEY ALSO
HAVE DIFFERENT OPPORTUNITIES TO
REDUCE EMISSIONS AS YOU GO ALONG
THAT THERE ARE PLACES NOW WHERE --
FOR EXAMPLE YOU KNOW SOLAR
ENERGY ISN'T BEING UTILIZED AT
ALL BUT COULD BE USED IN A VERY
COST EFFECTIVE WAY.
AND WHERE PEOPLE ARE ONLY JUST
BEGINNING TO FIGURE OUT HOW TO
TAKE ADVANTAGE OF WHAT'S OUT
THERE NOT EVERY PART OF THE
GLOBE AT CAN OR SHOULD.
DEVELOP IN THE WAY THAT WE DID
STATE AND AS A COUNTRY WE WERE
BLESSED WITH ALL THESE.
RESERVES OF COAL AND OIL THAT
OTHER PEOPLE JUST DON'T HALF AND
SO OUT WE'RE KIND OF NOW GOING
BACK AND RE INVENTING SOME OF
THESE --
IDEAS AND AND WERE IN IN A
POSITION WHERE WE CAN BE HELPFUL
TO OTHER PLACES AND NOT JUST OUT
OF THE GOODNESS OF OUR HEART BUT
OUT OF SELF INTEREST BECAUSE OUR
ECONOMY WILL.
BENEFIT IF OTHERS ARE ABLE TO
USE SOME OF THESE TECHNOLOGIES
AS WELL SO --
I I SEE THIS PROGRAM IS A AS
POTENTIALLY.
A WINNER FOR CALIFORNIA'S DESIRE
TO ATTRACT THE BEST AND THE
BRIGHTEST OF ENTREPRENEURS AND
IT DOES CNTINUE ON THE PATH
THAT WE'VE BEEN ON FOR ALL THESE
YEARS OF EXPORTING OUR AT
UNIVERSITY YOU KNOW TOP THE TOP --
EXPORTS IN THE IN THE WORLD AND
HOPEFULLY WE CAN DO THAT WITHOUT
AS YOU SAY PUTTING TOO MUCH OF A
BURDEN ON THE PEOPLE WHO LIVE
HERE ALREADY ADAM.
BUT THE LOWER INCOME PEOPLE AND
I KNOW IN YOUR DISTRICT THEY DO --
NEED TO USE MORE ELECTRICITY FOR
AIR CONDITIONING BECAUSE OF THE
HOTTER SUMMERS AND THAT'S JUST
CONTINUING TO GET WORSE --
WE'RE GOING TO HAVE TO FIND WAYS
TO MAKE THE HOUSES MORE
EFFICIENT TO MAKE THE AIR
CONDITIONING ITSELF MORE
EFFICIENT.
AND YOU KNOW ALLOW FOR WAYS --
TO TO GENERATE ELECTRICITY THAT
ARE DON'T USE AS MUCH RESOURCES
AS WERE USING TODAY IF WE CAN DO
ALL THOSE THINGS WHICH I THINK
ARE TECHNOLOGICALLY FEASIBLE AND
WHICH WE COULDN'T GET THE
INVESTMENT NOT JUST FROM
GOVERNMENT BUT FROM.
THE PRIVATE SECTOR TO DO THEN I
THINK WE HAVE.
FOUND A WAY WE CAN FIND A WAY TO
MAKE THIS ACTUALLY A A NET WIN
FOR THE ECONOMY.
THANK YOU FOR THAT ANSWER AND I
I I COME FROM A A VERY --
GREEN COUNTY --
WE HAVE GEO THERMAL.
JEFF WE HAVE WIND.
WE HAVE SOLAR.
I IN FACT --
OUR COUNTY SPEARHEADED THE
EXPANSION OF PEACE PROGRAMS
THROUGHOUT THE STATE OF
CALIFORNIA.
SO THE WE COULD BE GREEN SO THAT
WE COULD LOWER ELECTRICITY RATES
ESPECIALLY IN.
THE PALM SPRINGS AREA WERE
GUESTS TO BE A HUNDRED TWENTY TO
TWO HUNDRED TWENTY FOUR DEGREES
IN THE PEAK OF SUMMER.
SO OUR EDITOR CITIZENS OF REALLY --
STEP UP TO THE PLATE --
THE SCOPING PLAN AND OTHER STATE
POLICIES CALL FOR GREATER
ELECTRIFICATION NEWS YOU
MENTIONED BY EXAMPLE THAT YOU
DRIVE AN ELECTRIC CAR NOW I'M.
VERY PROUD TO SAY THAT I'M I'M
I'M SORT OF A SOMEWHAT OF A
GREEN REPUBLICAN I ACTUALLY OWN
THREE ELECTRIC CARS.
AND VERY PLEASE WITH --
THE PROGRESS THAT WE'VE MADE
ESPECIALLY WITH.
RANGING RANGE RANGE ANXIETY AND
OTHER MANUFACTURERS NOW THAT ARE
STEPPING UP AND CERTAINLY WE
WE'VE SEEN A BIG --
SOLOMON FROM VOLKSWAGEN THIS
GOING TO PROVIDE FOR MORE
ELECTRICAL CHARGING STATIONS
THROUGHOUT THE STATE THE
INFRASTRUCTURE NEEDS TO BE THERE
IF YOU'RE GONNA HAVE A
SUCCESSFUL.
MARKETING OF THESE CARS SO THE
PEOPLE DON'T HAVE THE RANGE
ANXIETY THAT --
CONCERT MAYES SYSTEM AND I'VE
ALREADY TALKED TO SOME MAJOR
COMPANIES ABOUT THE TEST LET
TRUCKS --
END OF THE RANGE THAT THEY GET
AND THE ONLY CHALLENGE THEY HAVE
NOW AS YOU KNOW THE THE THE THE
PACE AT WHICH THEY CAN BE --
RECHARGE --
BUT WE KNOW THAT WITH THESE WITH
THE BATTERIES --
THAT CALLS FOR CERTAIN MINERALS
THAT ARE READY MIND AND OTHER
PARTS OF THE OF THE WORLD EVEN
THOUGH WE HAVE A DRAMATIC --
AMOUNTS OF LITHIA AT THE SALTON
SEA AREA THAT WE TRY TO MARKET --
TO TEST Là AND OTHERS BUT WE'RE
BUT THESE --
LITHIUM ION BATTERIES --
IN GETTING THAT LET THEM IS BEEN
LINKED TO SIGNIFICANT
ENVIRONMENTAL DEGRADATION.
CHILDHOOD SLAVERY ESPECIALLY IN
THE CONGO AREA --
AND HAS A A. R. BE CONSIDERED
ITS POTENTIAL ROLAND
EXACERBATIONS OF THIS.
MORAL CRISIS --
IN ENSURING THAT WE'RE GETTING --
LITHIUM FROM --
ETHICAL SOURCES IF YOU WILL
NUMBER ONE AND NUMBER TWO AND I
DON'T KNOW IF THIS QUESTION'S
BEEN ASKED BUT WE WE'RE SAYING --
A LARGER SALE OF ELECTRIC CARS
AND HYBRIDS --
THAT HAVE A CERTAIN LIFE.
WHAT HAS BEEN FOUGHT IN A?
FIVE IF IT'S ALREADY BEEN
DISCUSSED I APOLOGIZE BUT WHAT
WE'RE GONNA DO WITH ALL THESE
OLD BATTERIES --
IS THIS GOING TO CREATE ANOTHER
ENVIRONMENTAL --
DEBACLE FOR US IN HERE WE'RE
TRYING.
TO HAVE A CLEANER ENVIRONMENT BY
EMBRACING THIS TECHNOLOGY BUT
ARE WE CREATING A HAZARD.
AT THE END OF LIFE OF THESE
PRODUCTS.
A SO I I THINK I HEARD TWO
DIFFERENT QUESTIONS ALL START
WITH THE BATTERY ONE WHICH IS --
THERE'S BEEN A LOT OF WORK DONE
ON BATTERY RECYCLING AND HOW TO
EXTRACT THE MINERALS SUCH AS
LITHIUM FROM --
USED BATTERIES THEIR VARIETY OF
DIFFERENT --
IDEAS FOR THE BEST RIGHT NOW
THERE ARE.
YOU PEOPLE UTILIZING SOME OLD
BATTERIES AS A STORAGE --
FOR ACCESS ELECTRICITY AND TIMES
OF WHEN THERE'S MORE ELECTRICITY
BEING GENERATED AND THEN
ALLOWING IT TO BE RELEASED WHEN
THERE'S A NEED FOR THE
ELECTRICITY SO THEY CAN YOU CAN
TAKE A BASICALLY A WHOLE ARRAY
OF THESE AUTOMOTIVE BATTERIES
AND GROUP THEM TOGETHER AND USE
THEM.
AS A STATIONARY SOURCE FOR
STORAGE AND AND GIVING BACK OF
ELECTRICITY BUT THERE'S ALSO
WORK BEING DONE ON EXTRACTION OF
THE MINERALS AND REUSING THEM IN
BATTERIES.
AND AS ELECTRIC VEHICLES BEGIN
TO BE MORE THAN THE RELATIVELY
SMALL SHARE OF THE MARKET THAT
THEY ARE NATIONALLY YOU'RE GONNA
SEE MORE PLANTS THAT ARE.
BEING CREATED TO DO THAT --
ON YOUR FIRST QUESTION --
WE HAVE NOT --
TAKEN ON A ROLE IN TERMS OF OF
TRYING.
TO POLICE LITHIUM IS BEING --
PRODUCED RIGHT NOW.
BUT WHAT WE ARE LOOKING AT IS
SOME PROJECTS THAT ARE BEING --
WE KNOW ARE BEING PROPOSED FOR
FINDING MORE LITHIUM FINDING
BETTER WAYS TO USE THE LITHIUM
THAT WE HAVE HERE DOMESTICALLY
SO I'M AWARE OF BOTH A MINING
PROJECT IN NEVADA AND A PROJECT
AT THE SALTON SEA TO TAKE
LITHIUM OUT OF THE GEOTHERMAL
STEAM WHICH IS.
CURRENTLY BEING OUT PROMOTED BY.
A COMPANY THAT DOES BUSINESS IN
CALIFORNIA --
WHICH LOOK PRETTY INTERESTING
AND HAVE SOME VERY --
POTENTIALLY POSITIVE SPIN OFF
SIDE EFFECTS --
IN TERMS OF OTHER --
RESEARCH AND DEVELOPMENT THINGS
THAT COULD BE ATTRACTED BY BY
THOSE PROJECTS SO --
WERE.
ENTHUSIASTICALLY FOLLOWING IT
OTHER THAN THAT JUST TRYING TO
BE AWARE OF WHAT'S GOING ON
THANK YOU.
I LOVE THE FORMA MORE ON SOME OF
THOSE ISSUES TO THE END OF LIFE
ISSUES AND AND AND THEN --
YEP SOME --
QUESTIONS FROM THE FROM THE
MEMBERS.
MR YES CENTER LASER.
WHAT CHAIR NICHOLS IT'S THAT
IT'S?
IT'S SO WHY HISTORICAL TO HAVE
YOU HERE HAVE AT THAT FOR A
DESCRIPTIVE TERM YOU'VE BEEN
AROUND A LONG TIME.
THANK YOU I THINK.
I'LL TAKE THAT AS A COMPLIMENT
SO IT'S ALWAYS.
THAT'S MEANT AS A COMPLIMENT --
THE WORK THAT YOU DO AS SO
IMPORTANT TO OUR STATE INNER
GLOW AND AS I SAID TO THIS
HEARING --
IN HERE FROM --
SO MANY EXPERTS INCLUDING
YOURSELF IT IS VERY COMPLEX.
AND IT'S IT'S NOT AS EASY TO GET
YOUR HANDS AROUND EVEN AS A
POLICYMAKERS LAWMAKER.
TERMS OF WHAT A THE RIGHT
CHOICES TO MAKE AND WE TALK
ABOUT BALANCING THE TALK ABOUT.
DIVERSITY OF OUR STATE IN OUR
PEOPLE AND THEIR LIFE EXPERIENCE
AND HOW THESE THINGS OF THAT BUT
AT AND I'VE OF HIS OF MINDFUL OF
YOUR REFERENCE EARLIER ABOUT
YOUR Q. AN AD THAT WAS BEEN
PREPARED FOR YOU.
SO I THINK ABOUT STANLEY AS I
ASK YOU THIS QUESTION --
WHAT DO YOU THINK --
OF WHAT YOU THINK THE AT THE
AVERAGE PERSON.
UNDERSTANDS OUR KNOWS ABOUT THE
SPACE IN WHICH YOU OCCUPY WHAT
DO YOU THINK THE BIGGEST
MISUNDERSTANDING THAT THEY HAVE --
IN THEIR LIFE --
THAT THAT YOU COULD CLEAR UP
RIGHT HERE WHAT DO YOU THINK IT
IS THAT --
HERE THEY THEY HEAR ALL THE ALL
THE NATIONAL IT.
EXCHANGE ON CLIMATE CHANGE AND
INTERNATIONAL.
I ISSUES IN COUNTRIES MET IN THE
AND THEN THEIR OWN LIFE THAT
THEY ARE EXPERIENCING.
WHAT WHAT DO YOU THINK THEIR
BIGGEST MISUNDERSTANDING OF YOUR
WORK [inaudible]
A OF THIS PROBABLY.
IS NOT THE ANSWER THAT I WOULD
GIVE IF I'D HAD A LOT MORE TIME
TO THINK ABOUT IT BUT BUT I WHAT
I ACTUALLY THINK IS THE BIGGEST
MISUNDERSTANDING.
WITH THE BIGGEST OBSTACLE THAT
WE HAVE IS THE FEAR THAT THERE'S
NOTHING WE CAN DO ABOUT THE
PROBLEM.
THE MORE I SEE OF THE NEWS CYCLE
OF THE REPORTING WHICH NOW
ALWAYS IDENTIFIES THE TIE
BETWEEN GLOBAL WARMING AND
THINGS LIKE SPECIES EXTINCTION
AND FIRES AND FLOODING AND SO
FORTH.
THE MORE I FEEL THAT --
PEOPLE ARE FEELING.
IT WE'VE GONE FROM DENIAL TO
OVERWHELMED BY THE SIZE OF THE
PROBLEM AND HOW HARD IT IS TO
ADDRESS.
AND SO IF THERE WAS ONE THING
THAT I WOULD WANT TO DO IT WOULD
BE TO TRY.
TO FIND A WAY TO COMMUNICATE
THAT ALTHOUGH.
ADDRESSING IT IS A CHALLENGE AND
WE WON'T.
TOTALLY SUCCEED IN MAKING OUR
CLIMATE BUT IT WAS FIFTY YEARS
AGO BECAUSE THERE'S ALREADY MORE
CARBON OUT THERE THAN WE COULD
GET RID OF THROUGH --
EVEN THROUGH A VERY AGGRESSIVE
PROGRAM OF OF OF CARBON CAPTURE
NEVER THE LESS THAT THERE ARE
SOLUTIONS.
THAT WE KNOW ABOUT INCLUDING
JUST SIMPLE THINGS LIKE PLANTING
TREES --
THAT CAN IF DONE CORRECTLY IN
THE RIGHT WAY IN THE RIGHT
PLACES AND YOU KNOW THE TREES
ARE ALLOWED TO LIVE AND SO FORTH.
CAN ACTUALLY --
MAKE A SIGNIFICANT DIFFERENCE IN
WHAT LIFE WILL BE LIKE --
FOR OUR KIDS AND OUR GRANDKIDS
SO -- I IT'S
HARD TO BE BOTH A PESSIMIST
TALKING ABOUT THE GLOOM AND DOOM
THAT WE'RE FACING FROM SEA LEVEL
RISE AND ALL THESE OTHER
TERRIBLE THINGS.
AND TO BE AN OPTIMIST AT THE
SAME TIME THINK THAT'S WHAT WE
HAVE TO DO AND IF I COULD.
YOU KNOW IMPLANT ONE FOUGHT AND
PEOPLE LIKE YOURSELVES WHO
REPRESENT --
VOTERS AND WHO TALKED TO PEOPLE
THAT WOULD BE TO HELP US TRY TO
FIGURE OUT A WAY TO COMMUNICATE
THAT.
THANK YOU AND IN ONE ONE OTHER
QUESTION YEAH THERE'S A THERE'S
BEEN WITHIN THE LEGISLATIVE
COMMUNITY ON BOTH SIDES OF THE
AISLE THERE'S CONSTANT CHATTER
ABOUT ACCOUNTABILITY FOR CHOICES
THAT ARE MADE IN THE SPACE AND
WE OWNING UP TO THE COSTS AND
BENEFITS AND RISKS AND ALL THE
REST.
AND HAVE WEEK AT GIVEN AUTHORITY
AWAY TO AND NINE ACCOUNTABLE --
BODY -- THE
AIR RESOURCES BOARD AND THE LIKE
BUT IF THERE WAS WHILE ONE
MISUNDERSTANDING YOU THINK THAT
WE HAVE AS LEGISLATORS --
THAT YOU COULD CLEAR UP FOR A
ONE AND SPEAK TO TODAY WHAT WHAT
WOULD THAT MISUNDERSTANDING BE --
I HAVE.
I HAVE HEARD THROUGH THE
GRAPEVINE ALTHOUGH MAYBE NOT
DIRECTLY THAT --
THERE ARE PEOPLE WHO THINKS THAT
THERE RESOURCES BOARD IS --
NOT INTERESTED IN OR NOT
RESPONSIVE TO THE LEGISLATURE
AND WHAT THE LEGISLATURE'S
INTERESTED IN AND I SAY THAT YOU
KNOW.
WE HAVE ALWAYS BEEN EVERYWHERE
ANTICIPATING EVERYBODY'S
QUESTIONS OR PROVIDING THEM
EVERY ANSWER THAT THEY WANTED
BUT WE SURE TRY --
TO SEE THIS AS SOMETHING WHERE
THE LEGISLATURE HAS A ROLE NOT
JUST AS THE AT NOT JUST IN
PROVIDING THE MONEY --
YOU KNOW HAVING US ON THE BACK
ALTHOUGH THAT'S ALWAYS NICE IF
THAT HAPPENS BUT MOSTLY IT'S
ABOUT REALLY TRIED TO GET --
EVERYBODY ON BOARD WITH THE
OVERALL APPROACH BECAUSE IT IS
SO BIG AND COMPLICATED SO I
DON'T EXPECT THERE TO BE
UNANIMITY ABOUT ANYTHING BUT I
THINK IF WE CAN USE.
HEARING IS LIKE THE TO TO
PROMOTE A SENSE THAT THIS IS A
SHARED ACTIVITY.
THAT THAT'S A REALLY GOOD THING --
YOU KNOW A COUPLE OF YEARS AGO
THERE WAS CERTAINLY A SENSE THAT --
A ARBY'S PROGRAMS WERE ONLY
FOCUSING ON THE A LEAD IN THAT
WE WEREN'T --
THINKING ENOUGH ABOUT THE
PROBLEMS OF PEOPLE IN THE
DISADVANTAGED COMMUNITIES AND SO
THAT WAS A SPATE OF LEGISLATION
THAT WAS DESIGNED TO BOTH EXPAND
THE BOARD.
ODD TO PUT MEMBERS OF THE
LEGISLATURE ON THE BOARD AND TO
MAKE SURE THAT A PERCENTAGE OF
ALL THE FUNDS OF THAT ARE
ACCUMULATED FROM THE CAP AND
TRADE PROGRAM WERE SPENT IN
THOSE COMMUNITIES.
AND IT SEEMED AT FIRST LIKE THIS
WAS A INTENDED TO BE A LOT OF IT
OUT THAT IT WAS A SIGN THAT.
THINGS HADN'T BEEN DONE WELL IN
THE PAST LET'S.
JUST LIKE WHEN TERM LIMITS WERE
PASS THERE IS A SENSE OF
NEGATIVITY ABOUT AT ALL --
AND MAYBE IN SOME RESPECTS
THINGS GO TOO FAR --
BUT I FIND THAT THE INCREASED
ATTENTION AND ABILITY TO GO INTO --
DISADVANTAGED COMMUNITIES AND TO
SHOW THAT THE PROGRAM IS HAVING
AN IMPACT THAT MONIES HAVE BEEN
ACTUALLY SPENT IN COMMUNITIES ON
PROJECTS THAT PEOPLE CARE ABOUT.
IS A TREMENDOUS ASSET HAND WHEN
PEOPLE -- IT
FROM OTHER COUNTRIES IN
PARTICULAR ARE ASKING ABOUT THE
PROGRAM I ALWAYS MAKE IT A POINT
TO TELL THEM ABOUT THIS PIECE OF
IT BECAUSE MOST PEOPLE DON'T
KNOW THAT IN ADDITION TO DOING A
CAP AND TRADE PROGRAM.
AND COLLECTING ALL THIS MONEY
THAT WE ACTUALLY SPENT THE MONEY
ON THINGS THAT WERE THAT THE
LEGISLATURE APPROPRIATED IT FOR
AND THAT WERE BENEFICIAL --
TO TWO PEOPLE AND THAT PART OF
IT SOMETIMES JUST GETS LOST IN
THE DISCUSSIONS SO I HOPE TO DO
MORE OF THAT.
THANK YOU I THANK YOU FOR YOUR
THOUGHTFUL ENGAGEMENT WITH US
TODAY --
THANK YOU FOR YOUR COURAGEOUS
LEADERSHIP OVER SO MANY DECADES
I THINK.
ONE OF PEOPLE ARE GRAND KIDS
LOOK BACK AT WHAT WE ARE DOING
AND HAVE DONE --
IN THE PAST THAT THE LOOK AT
YOUR LEADERSHIP WITH A GREAT
MARKET DISTINCTION.
AND AND WE'RE VERY APPRECIATIVE
CENTER I CAN'T HELP IT SECOND
THOSE THOUGHTS.
I HAVE A NUMBER THINK SOMEONE
ASKED ABOUT BUT I REALIZE WE
ONLY HAVE BEEN LESSEN OUR NOW
I'M LEFT TO GO AND TO UP TO
ADDITIONAL PANELS AND IT ALSO
YOU.
IN A STRONGLY HINTED THAT --
THERE'S ONLY A CERTAIN AMOUNT
YOU WANT TO STATE PUBLICLY GIVEN --
THE IMPACT THAT YOUR REMARKS
SOMETIMES HAVE ON THE MARKET THE
AUCTIONS --
SO I'M GOING.
TO SAVE SOME OF THESE THINGS FOR
A FOR A ONE ON ONE MEETING BUT I
DO APPRECIATE YOUR YOUR YOUR
TESTIMONY GREAT DEAL IN --
AND YOU KNOW I GUESS MY THE I'VE
I I I'M STILL NOT AND ENTIRELY
SURE HOW HAD --
YOU KNOW.
THE YOUR JUSTIFICATION BY THE
38%.
IN THE SCOPING PLANNED THOUGH --
I I CAN I CAN SURMISE WHAT SOME
OF THAT IS GOING TO IN IN --
I IMPLICATE TERMS A DECISIONS AT
THE RP.
I DON'T WANT YOU TO HAVE.
TO GET A SPELL THAT OUT TOO MUCH --
BUT BUT I KNOW THAT TECH THAT
CONTINUES TO BE AN AREA OF
CONCERN OUT THERE AND THEY'RE I
MEAN THEY'RE EVEN SOME FOLKS WHO.
CLAIM THAT THE IMPACT IS BEEN
EVEN LESS THAN 5% ADD.
SO HOW WE GO FROM THERE ABOUT
THE OTHERS DEBATES ABOUT THAT
BUT HOW WE GO FROM THERE ARE TO
THIRTY EIGHT IS --
SO TOUGH.
AS A TOUGH THING YOU WANTED.
TOUCH ON THAT AT ALL OR OR I
THINK IT IS A LONGER
CONVERSATION I IT IT'S NOT THAT
I AM NOT WILLING TO TALK ABOUT
IT BUT I THINK I'D LIKE.
TO WALK YOU THROUGH SOME OF THE
ASSUMPTIONS AND THE THE REASONS
WHY LEAVE --
ALLOCATED THE PERCENTAGES OF
REDUCTIONS IN THE WAY THAT WE
HAVE AND IF YOU WANTED TO ASK US
QUESTIONS IN WRITING AND HAVE US
FOLLOW UP THAT WAY WE CERTAINLY
WOULD BE.
HAPPY TO DO THAT OR COME BACK
ANOTHER AND I THINK I I ASSUME
YOU'VE TAKE INTO ACCOUNT THE
CONCERNS OF THE LA --
AS AS REYES ABOUT BANKING AND
YES YEAH.
OKAY I WOULD LOVE TO HAVE
CONTINUE THE CONVERSATION MISMAS
I SHARE A LAST QUESTION I'M NOT
A QUICK QUESTION I JUST WANT TO
THANK YOU ON THIS NICHOLS I
THINK YOU STARTED WHEN I DID
BACK IN NINETEEN NINETY NINE IT
WAS ON ONE OF THE COMMITTEES ON
I THINK.
YOU CAME.
I INTO THE LEGISLATURE AT THAT
TIME SO --
GOOD JOB MANY MANY YEARS ARE I
JUST LIKE TO ACTUALLY ADDRESS MY
COMMENT TO OUR CHAIR I THINK IT
WOULD BE SO VERY IMPORTANT. TO
HAVE THIS NICHOLS BACK FOR A
MORE EXTENDED CONVERSATION
REGARDING OUR THEIR APPROACH ON
A ARE BE BECAUSE I AM CONCERNED
SPECIFICALLY WITH THE TIMING OF
ALL OF THIS FAITHFULLY ELEVEN
YEARS AND WHICH WERE SUPPOSED TO
MEET A NEW TARGET.
AND THAT IS I THINK WHAT CREATES
THE EXTREME ANXIETY IN OUR
COMMUNITY BECAUSE IT HAS TO BE
MORE OF THE SAME ISSUE SAID IT
HAS TO BE MORE OF THE SAME AND
ASK ME FASTER.
AND THERE ARE CERTAIN MAJOR
IMPACTS TO OUR LOW INCOME
COMMUNITIES AND WE CANNOT DENY
THAT ANY LONGER.
THE REGRESSIVE PRICING --
THE THE PRICING POLICIES ARE SO
REGRESSIVE THEY'RE REALLY
HURTING AND LET ME GIVE YOU ONE
EXAMPLE.
MY BROTHER IS LOW INCOME HIS
ENERGY BILL WAS ALMOST OUR 35%
OF HIS TOTAL INCOME THIS MONTH.
BECAUSE HE NEEDED SUMMIT HEAT.
SO THESE ARE REAL
STORIES OF OF CALIFORNIANS WE
NEED TO DO WHAT WE'RE TRYING TO
DO HERE IN TERMS OF OUR
ENVIRONMENT SAVING THE PLANET
ALL OF THAT.
THAT I THINK WE NEED TO TAKE --
A DEEPER DIVE THESE ARE
DEVELOPED AND THE SPEED AT WHICH
EACH AND EVERYONE OF ON THIS
IMPLEMENTED BECAUSE THEY THINK
WE HEARD IN THE EARLY COMMENTS.
THAT WE NEED TO DO A BETTER COST
EFFECTIVE MODEL WE NEED TO DO A
A DEEPER DIVE ON WHAT IS WORKING
AND AND WHICH IS FASTEST.
IN GETTING A FIRMWARE CLOSER SO
I DON'T THINK WE CAN DO THAT
TODAY.
THAT I'D LIKE TO HAVE THIS
NICHOLS COME BACK SO WE CAN HAVE
pMORE OF THAT KIND OF
CONVERSATION.
I DO BELIEVE THE LEGISLATURE
NEEDS TO HAVE MORE ENGAGEMENT IF.
OVERSIGHT ALSO ON THE POLICIES
THAT ARE IMPLEMENTED THROUGH A
RB THEN THAT EXPAND --
MAJOR OF THE DISCUSSION HERE
WHEN OUR FUNNY Q. LAST YEAR OR
TWO YEARS AGO FILL THOSE ARE
JUST THAT I I WANT YOU TO KNOW
AND I THINK WE ALL KNOW YOU'VE
GOT A HUGE JOB.
AND YOU'VE MANAGED IT SO VERY
WELL WITH YOU KNOW THINGS THAT
GO UP AND DOWN IN THE FIVE CALLS.
THAT FINAL COMMENT GAS IN MY
DISTRICT IF NOT LESS THAN THREE
DOLLARS AND FORTY CENTS SO I
DON'T KNOW WHERE.
SENATOR Y. CROSSKEYS BUYING HIS
BUT I'D LIKE TO SEND MY ENTIRE
POPULATION OUT THERE THANK YOU.
YEAH YEAH I LOOK I I MEAN RIGHT
AND THEN FOR EVERYONE WHO SAYS
RAISES THE VERY VALID CONCERNS
HAVE BEEN RAISED BY OUR
COLLEAGUES ABOUT --
ABOUT PRICE IMPACTS THERE'S ALSO
FOLKS ON THE OTHER SIDE YOU SAY.
WE'RE NOT MEETING OUR GOALS WE
HAVE A LOT FOR THE TO GO AND AND
THIS IS A REAL EXISTENTIAL
CRISIS.
AND CALIFORNIA HAS SUCH A UNIQUE
ROLE THAT IT'S PLAYING HERE THAT
AND SO THERE'S THERE THOSE WHO
CRITICIZE YOU FOR NOT BEING
AGGRESSIVE ENOUGH --
SO.
A DIFFICULT.
WELL DIFFICULT I'M STILL HERE.
AND I'LL BE BACK TO QUOTE MY FOR
BUT YOU'LL BE BACK.
THANK YOU THANK YOU AND I REALLY
APPRECIATE IT THANK --
WELL IN FACT TO PRESENT A
DIFFERENT PERSPECTIVE AND AND I
KNOW SOMEONE WHO.
HAS RAISED HIS OWN CONCERNS
ABOUT THE AIR BEES PA WE HAVE
DOWN DANNY CALLING WORD WHOSE --
SENATE APPOINTEE FOR IT MAC AS I
MENTIONED THE INDEENDENT
MISSIONS MARKET ADVISER COUNCIL
I ALSO UNDERSTAND YOU RECENT
FATHER OF TWINS IS THIS RIGHT AT
THREE WEEKS AREA OMEGA WELL WELL
MAZEL TOV AS WE SAY --
YOU KNOW WE'VE GOT AT LEAST.
THREE MEMBERS THE TRIBE HERE ON
THE ON THE ON THE ON THE PANEL
TODAY BREAKING.
THERE YOU GO.
RIGHT AS WELL I'M I'M A I'M A
DAD OF A FOUR MONTH OLD AND SO I
AND I I'M SURPRISED YOU DON'T
LOCAL MORE TIRED --
YOU'RE NOT LOOKING HARD ENOUGH
ALL RIGHT RIGHT RIGHT WITH WE
WERE THE GLASSES I GUESS SO
APPRECIATE YOU BEING HERE AND
AND PRESENTING I I JUST WAS
GONNA PATERNITY LEAVE BUT THAT
IS IT SHOWS YOUR DEVOTION TO THE
STATE THAT YOU'RE HERE.
PRESENTED TO US SO.
PLEASE PRETTY WELL THANK YOU IN
THE THANKS REALLY GO TO MY
PARTNER NINA AND MY MOTHER IN
LAW MADE THIS POSSIBLE TODAY --
SO AND I THINK IN THE INTEREST
OF TIME ALL TRYING KEEP THINGS
RELATIVELY SHORT AND ENGAGE ANY
QUESTIONS YOU'LL HAVE --
I PREPARED AS A SHORTHAND OUT
FOR YOU ALL THINK THE THE MOST
IMPORTANT THING TO SAY.
ABOUT THE SITUATION RIGHT NOW IS --
THE DEBATES AND DISCUSSIONS ALL
HAD I THINK A REALLY IMPORTANT
DISCUSSIONS OF MY ROLE AS A
MEMBER OF THE INDEPENDENT
EMISSIONS MARKET ADVISORY
COMMITTEE OR THE I MAC.
IS TO REVIEW THE DECISIONS AND
DISCUSSIONS THAT ARE BEING MADE
AND PROVIDE TECHNICAL ADVICE
ABOUT THOSE --
DISCUSSIONS AND DECISIONS I
THINK THE MOST IMPORTANT THING I
CAN SHARE WITH YOU IS THAT THE
THE SCOPING PLAN THAT WAS
DEVELOPED AND FINALIZED.
IN LATE TWENTY SEVENTEEN AFTER
THE A MUCH INCREASED ROLE FOR
THE CAP AND TRADE PROGRAMS YOU
DISCUSS NATIONAL THROATED
DIFFERENT NUMBER YOU ALL BEEN
CITING THE NUMBER FOR CUMULATIVE
EMISSION REDUCTIONS AND IT'S
TRUE THAT.
THE PLAN FOR THE NEXT TEN YEARS
RELIES ON THIS PROGRAM 438% OF
THE MISSION REDUCTIONS IF YOU
LOOK AT THE REDUCTIONS THAT ARE
REQUIRED IN THE YEAR TWENTY
THIRTY A NUMBERS ACTUALLY BUT
47%.
SO THAT HALF OF THE WORK THAT
CALIFORNIA NEEDS TO DO ACCORDING
TO THE SCOPE AND PLAN IS
EXPECTED TO COME FROM THE CAPITA
RATE PROGRAM.
THIS IS DIFFERENT FROM PREVIOUS
ITERATIONS OF THE SCOPE IN PLAN
WE'RE CAP AND TRADE IS PLAYED A
MUCH SMALLER --
AND AN ARGUABLY LESS SIGNIFICANT
ROLE.
AND I THINK THE MOST IMPORTANT
THING I CAN SHARE WITH YOU THE
RESPECT OF THIS PLAN IS THAT THE
CAPITA RATE REGULATIONS ADOPTED
IN DECEMBER.
ALMOST NO RELATIONSHIP TO THAT
PLAN.
JUST ALMOST NO RELATIONSHIP --
UP THE TESTIMONY I HAVE IN
WRITING WILL WALK THROUGH SOME
OF THE DETAILS ABOUT THIS THE
ASSUMPTIONS IN THE SCOPING PLAN
ARE RADICALLY DIFFERENT THAN THE
STATEMENTS MADE BY THE BOARD
WITH RESPECT TO THEIR
EXPECTATIONS FOR THE PROGRAM --
THE REGULATORY ANALYSIS DONE
DOESN'T CONFRONT THE PLANE
STATUTORY DIRECTION. TO ADDRESS
THE ISSUE OF THERE BEING TOO
MANY ALLOWANCES IN THE PROGRAM
WHICH A DOCTOR BROWN TALKED
ABOUT -- AND
I WON'T EXPLAIN IN MORE DETAIL.
FROM THE ANNOUNCES THAT SON ALSO
MY OPINION RESTS ON A BASIC
MATTER THAT OTHER LEGISLATIVE
COMMITTEES HAVE IDENTIFIED --
AND WHICH FRANKLY I THINK IS
WELL BELOW THE STANDARDS WE NEED
TO SET FOR OURSELVES IN TERMS OF
ACCOUNTABILITY AND AGAIN
WHEREVER PEOPLE WANT TO COME OUT
ON THE QUESTION OF WHAT ROLE.
OF CAP AND TRADE AND OTHER
REGULATORY INSTRUMENTS BASIC
FACTS NEED TO BE CLEAR --
AND UNFORTUNATELY THEY HAVE NOT
BEEN SO FAR IN THIS PROCESS --
I WILL REFER YOU TO A COUPLE OF
RECOMMENDATIONS THE I A MAC PUT%
OUT ITS FIRST ANNUAL REPORT IN
OCTOBER.
AND TO ADDRESS THIS DEBATE OVER
WHETHER OR NOT THE PROGRAM'S
PERFORMING WELL RECOMMENDED
METRICS TO TRACK THIS QUESTION
OF WHETHER OR NOT THERE ACCESS
COMPLIANCE INSTRUMENTS IN THE
PROGRAM --
SO FA A. R. B. HAS NOT ENGAGED
OR ADOPTED ANY SUCH METRICS BUT
THERE ARE METRICS THAT ARE OUT
THERE IN FACT EVERY OTHER CAP
AND TRADE PROGRAM IN THE WORLD
HAS THESE KINDS OF METRICS SO IN
SOME RESPECTS FOR LACKING THE
OTHER LEADERS IN THE SPACE --
IF YOU TAKE A LOOK AT THOSE
KINDS OF METRICS AND MY TEAM AND
THERE'S HEROES PRODUCED.
ONE I'D REFER YOU TO PAGE FIVE
OF MY HAND OUT THE MOST
COMPLICATED LOOKING CHART.
IT'S ACTUALLY VERY VERY SIMPLE
STATEMENT.
IF YOU TRACK THE NUMBER OF
ALLOWANCES AND CARBON OFFSETS
THE INSTRUMENTS THAT CAN BE USED
FOR COMPLIANCE IN THE CAPITA
RATE PROGRAM TO TAKE A LOOK AT
WHAT'S IN PRIVATE ACCOUNTS WITH
PEOPLE ACTUALLY PURCHASED AT
AUCTION.
CAN YOU COMPARE THAT TO THE
COMPLIANCE OBLIGATIONS THEY FACE
YOU CAN TRACK THE EXCESS BUILDUP
OF THESE ALLOWANCES AN OFFSET IN
PRIVATE ACCOUNTS THIS IS NOT
SPECULATIVE THIS IS LITERALLY
WHAT ENTITIES ARE HOLDING
ACCORDING TO AIR BEES REPORTING.
AND THERE'S BEEN A DEBATE ABOUT
THIS ISSUE --
AS DOCTOR BROWN ALLUDED TO
EARLIER THIS MORNING I THINK
IT'S PROBABLY THE MOST IMPORTANT
PART OF THE POST TWENTY TWENTY
MARKET DESIGN PACKAGE --
IN DISMISSING THIS PROBLEM
ENTIRELY IN TAKING NO ACTION TO
CORRECT IT.
OF THE BOARD PROJECTED THAT AS A
WORST CASE SCENARIO NO MORE THAN
ONE HUNDRED AND FIFTY MILLION
ALLOWANCES WILL BE IN PRIVATE
HANDS IN EXCESS OF THEIR
COMPLIANCE OBLIGATIONS AND SAVED
INTO THE POST TWENTY TWENTY
PERIOD.
BY THE END OF TWENTY TWENTY NO
MORE THAN A HUNDRED FIFTY
MILLION --
THE METRIC MY TEAM HAS DEVELOPED
A VERY CLEARLY SHOWS THAT WE ARE
IN EXCESS OF THAT.
AS OF THE END OF TWENTY EIGHTEEN
AND THE PROJECTIONS FROM
INDEPENDENT NON PARTISAN
FINANCIALLY DISINTERESTED GROUPS --
CLOCKING UP QUITE A BIT HIGHER
THAN THE ARBY'S PROJECTIONS.
SHOWED.
A AND IT LOOKS LIKE AT LEAST FOR
NOW WE ARE ON TRACK FOR THOSE
PROBLEMS TO MANIFESTED THE SKILL
THAT CRITICS HAVE IDENTIFIED --
I WANNA POINT OF THIS PROBLEM IS
LIKELY TO GET WORSE FOR SOME
TIME.
THE PROGRAM CAPS ARE HIGHER THAN
EMISSIONS COVERED IN THE PROGRAM
AND SO LONG AS THESE OPTIONS
CONTINUE TO SELL ALL THE
ALLOWANCE IS MADE AVAILABLE.
THE EXCESS SUPPLY OF ALLOWANCES
WILL ACCUMULATE AND PRIVATE
ACCOUNTS --
THE ONLY WAY THIS PROBLEM
DOESN'T GET BETTER OR SORRY GETS
BETTER OF ITS OWN ACCORD IS IF
PEOPLE STOP BUYING ALLOWANCES AT
AUCTION WHICH MEANS LOWER
REVENUES AND DISRUPTION THE
PROGRAM.
I DON'T THINK ANYONE EXPECTS THE
COLLAPSE LIKE WHAT WE SAW IN
TWENTY SIXTEEN OR TWENTY
SEVENTEN BUT QUESTIONS AROUND
THE OUTLOOK FOR TIGHTLY
INTERTWINED WITH THIS IF.
THIS PROBLEM CONTINUES TO
MANIFEST WE WILL HAVE PROBLEMS
MEETING OUR TWENTY THIRTY GOAL --
IF THE OPTIONS STOP SELLING OUT --
WE MIGHT SORT OF MITIGATE THAT
TO SOME EXTENT BUT YOU HAVE THE
REVENUE IMPLICATIONS I JUST
DISCUSSED.
SO I CAN'T EMPHASIZE ENOUGH THAT
WHEN YOU HAVE ALMOST HALF OF THE
PLANNED REDUCTIONS FOR THIS
AGGRESSIVE TARGET COMING FROM A
PROGRAM.
AND NO ANALYTICAL CONSISTENCY
BETWEEN THE REGULATORY DESIGNED
THAT PROGRAM AND THOSE
ASSUMPTIONS THAT WE ARE IN QUITE
A DIFFICULT PERIOD --
I ALSO WANT TO RESPECT --
THE COMMENTS MADE BY SENATOR
BATES AND SENATOR STONE ABOUT
COST IMPACTS.
THERE IS THERE'S NO QUESTION
THERE ARE COST IMPACTS WHEN YOU
PURSUE CLIMATE POLICIES.
I THINK WHAT'S INTERESTING ABOUT
A MARKET BASED PROGRAM LIKE A
CAP AND TRADE PROGRAMS THAT
AFFORDS THE OPPORTUNITY TO
MITIGATE THOSE IMPACTS DIRECTLY
AND ONE ISSUE WE CAN DISCUSS IF
IT'S OF INTEREST.
IS WHETHER OR NOT PEOPLE SHOULD
BE RECYCLING SOME OF THE REVENUE
RAISED BY THIS PROGRAM TO
DIRECTLY MEDICAID THE COST
IMPACTS TO LOW INCOME AND OTHER
FAMILIES --
RIGHT NOW WE ARE BASICALLY A
SPENDING ORIENTED MODEL WHERE
ALMOST ALL OF THE REVENUE.
GETS SPENT ON DISCRETIONARY AND
PRE APPROPRIATED FORMULAS --
BY THE LEGISLATURE --
IT IS TRUE THAT RAISING PRICES
WILL HAVE COST IMPACTS AND THAT
IS ONE OF THE TOOLS THAT
LEGISLATORS AND THE EXECUTIVE
BRANCH HAVE AVAILABLE TO THEM.
TO CONSIDER ADDRESSING SOME OF
THOSE ISSUES IF YOU WANT TO DO
MORE THAN IT'S DOING TODAY.
IF YOU DON'T WANT TO RELY ON
THIS PROGRAM TO DO MORE THAN
IT'S DOING TODAY WHICH IS NOT
MUCH.
OTHER STRATEGIES NEED TO BE
ADOPTED TO STAND TRACK FOR THE
SB THIRTY TO TARGET.
AND THE LAST THING I'LL SAY IS
TO ECHO DR BROWN'S TESTIMONY I
THINK A LOT OF THOSE STRATEGIES
LOOK MUCH LESS COST EFFECTIVE
THAN A WELL DESIGNED MARKET
BASED PROGRAM.
AND SO APPRECIATING THAT HIGHER
EXPLICIT ENERGY COSTS CARRY
POLITICAL COSTS THE KERRY
SERIOUS CONSEQUENCES FOR
CONSTITUENTS.
pSMART DESIGNS THAT THE DIFFERENT
STRUCTURE THAN WHAT WE'RE
TALKING ABOUT.
IF WE DON'T TAKE ACTION WE'RE
OFF TRACK FOR THE TWENTY THIRTY
TARGET IN MY OPINION.
I AND I APPRECIATE ALL OF THE
DIFFICULTIES IN BALANCING THESE
ISSUES BOTH AT A OR B. AND IN
THE LEGISLATURE.
I'LL STOP THERE [inaudible]
YEAH -- ONCE
AGAIN I I JUST CAN'T HOW I THIS
IS ALL COMPLICATED STUFF AND YOU
KNOW VIEW ALL HAMMY BIG
DOCUMENTS LITERALLY AT THE
HEARING.
AND IT'S HARD FOR ME. TO TO SOAK
IT ALL IN AND SO I JUST I PUT A
LITTLE MESSAGE OUT TO THE
UNIVERSE THAT THE THE THE SOONER
EVERYONE GOT TO SIR MATERIALS --
THE MORE WE CAN ACTUALLY GRAPPLE
WITH THEM IN PREPARE FOR THIS
HEARING BUT DO APPRECIATE YOUR
ALBEIT VERY DARK ASSESSMENT.
OF THE OF THE FACTORS AT PLAY I
GUESS THE QUESTION IS --
WHAT WOULD YOU HAVE THE
LEGISLATURE DO? TO PUSH --
AN YOU DO I MEAN YOU'RE
COMMITTEE DOES SERVE AS A AS IN
AS CAN OFFICIAL ADVISER TO THE
AIR BE.
ARE YOU MAKING A SERIES OF
RECOMMENDS THE I MAC MAKING --
LOOK WHAT WHAT I GUESS THE DID
COME OUT OF THIS REPORT THAT THE
THE QUESTION IS WHAT WOULD SPEND
THE INTERPLAY WITH THERE BE ARE
THEY WHOA WHOA --
THAT I IDEA CLEARLY THERE'S THE
THEY'RE NOT FOLLOWING
RECOMMENDATIONS HOW HOW'S THAT
COMING ALONG CAN YOU GIVE US A
SENSE.
THE ISSUES THAT WERE RAISED IN
THE OVERSIGHT REPORT --
AND THE RIGHT RECOMMENDATIONS
THERE AND WE'RE NOT TAKEN UP IN
ANY SERIOUS AND SUBSTANTIVE WAY
IN THE REGULATORY PROCESS --
I WANT TO KNOW WHY WHAT'S WHAT'S
YOUR ASSESSMENT OF THE THE
CONFLICT.
I DON'T THINK I COULD SPEAK TO A
ARBY'S PERSPECTIVE ON THAT I
THINK THE CHALLENGES OF
INCREASING THE AMBITION OF THIS
PROGRAM ARE SIGNIFICANT AND
OBVIOUS AND I SUSPECT THAT'S A
BIG PART OF IT.
I ALSO THINK WE HAVE A PROBLEM
WITH THAT THE BOARD IS FRANKLY
NOT BEING AS TRANSPARENT ABOUT
ITS STATE OR ACTIONS.
AS IT NEEDS TO BE IN A CLEAR
LOOK AT THOSE ACTIONS
CONTRADICTS A LOT OF THE
RATIONALES FOR DECISIONS THAT
HAVE BEEN MADE SO I THINK THAT'S
IT.
INHERENTLY A CONTROVERSIAL THING --
I WANT TO ACKNOWLEDGE THE BOARD
IN ADOPTING THE CAPITA RATE
REGULATIONS ALSO SAID THEY WOULD
START -- AN
pYEAR AND I HEARD CHAIR NICHOLS
TESTIFIED THAT.
SOMETHING LIKE ANNUAL PROGRAM
UPDATES MIGHT BE A CONSIDERATION
SO I'M HOPEFUL ACTUALLY THAT
THERE'S ROOM FOR OF SERIOUS
CONSTRUCTIVE DIALOGUE.
IF FOR NO OTHER REASON THAN TO
START REPORTING THE DATA IN A IN
A WAY THAT --
FACILITATES A CLEAR I DISCUSS
BOTH AIR BE AND LEGISLATORS NEED
TO MAKE ABOUT THE TRADE OFFS
BETWEEN AMBITION COST
EFFECTIVENESS.
A AND SUCCESS ON THE
ENVIRONMENTAL SIDE.
MMHM WHAT WHAT WOULD YOU WANT TO
SEE THE LEGISLATURE DO --
WHAT WHAT ARE YOU ASKING US TO
DO ANY PARTICULAR --
I'LL ALSO TO STEP BACK FROM MY
ROLE ON THE COMMITTEE WHERE I
WOULDN'T HAVE ANY POSITION ABOUT
THAT -- I
WOULD SAY --
I THINK CONTINUING THIS
DISCUSSION IS REALLY IMPORTANT I
THINK THEIR SPECIFIC ACTIONS
THAT THE LEGISLATURE COULD
CONSIDER.
YOU COULD DIRECT THE OVERSIGHT
COMMITTEE TO ANALYZE SOME OF
THESE TECHNICAL QUESTIONS.
YOU COULD APPROPRIATE FUNDS ARE
OR SUGGESTED THAT FUNDS NEED TO
BE APPROPRIATED TO DO SOME OF
THE MONITORING AND EVALUTION
THE DOCTOR BROWN TALKED ABOUT.
THINK THERE'S BASIC.
INFRASTRUCTURE QUALITY OF
INFORMATION ISSUES WHERE --
STATEMENTS FROM THIS COMMITTEE
OR FROM THE LEGISLATURE COULD BE
HELPFUL TO ADVANCING A
CONSTRUCTIVE DIALOGUE ABOUT.
REALLY IDENTIFYING THE TRADE
OFFS THAT PEOPLE WANT TO PURSUE --
BE HAPPY ALSO TO MEET TO TALK IN
MORE DETAIL APPRECIATING THAT
THIS IS A LOT OF INFORMATION TO
ABSORB RATHER QUICKLY --
I'D PREFER TO SUBMIT MATERIALS
EARLIER AND AND WILL ARE ALLEN
MY FAMILY EXCUSE ONE SOURCE OF
COURSE OF COURSE I I DON'T MEAN
[inaudible]
TO YEAH --
THERE'S NO ACTIVE IN PRODUCING
SOMETHING LIKE THIS. THREE WEEKS
INTO MY BABY'S LIFE AND YOU HAVE
TWINS SO.
THAT'S A WHOLE OTHER THING --
OKAY A QUESTION FROM THE FROM
THE MEMBERS THOUGHTS OKAY I
WOULD REALLY LOVE TO ENGAGE WITH
YOU FURTHER AND HAVE SOME
OPPORTUNITY TO REALLY SO CALLED
THIS AND I MEAN IT DOES SEEM.
OBVIOUSLY THE CHAIR OF WAS A
LITTLE BLEAK BUT SHE DOES SEEM --
TO GOING TO BE VERY HELPFULLY
AWARE OF IN THE ALLOW ITS
BANKING PROBLEM EMERGE THE
CHALLENGES --
YOU KNOW IT'S ALWAYS DIFFICULT
BECAUSE HE DOES HAVE THIS.
FEDERAL RESERVE CHAIR LIKE ROLE
THAT --
THEY'VE.
BUT BUT I ALSO UNDERSTAND YOU
CAN HIDE BEHIND THAT --
CENTER IF I MAY I I WELCOME THAT
I THINK THAT'S A VERY.
PRODUCTIVE STOP --
I LOOK FORWARD TO COLLABORATIVE
ENGAGEMENT.
I SHOULD ALSO POINT OUT A WEEK
AGO THE REGULATOR ISSUED ITS
FINAL STATEMENT OF REASONS TO
NEARLY EIGHT HUNDRED PAGE
DOCUMENT DESCRIBING WHY THEY
WON'T TAKE ANY ACTION ON THESE
ISSUES.
AND I WOULD NOT USE ANY OF THE
THE TERMS YOU JUST DESCRIBED --
IN IN TALKING ABOUT THAT
DOCUMENT WHERE IT'S A FAIRLY
COMBATIVE AND DISMISSIVE
APPROACH. TO UP FAIRLY ENORMOUS
AMOUNT OF INDEPENDENT EVIDENCE
FROM MULTIPLE DISINTERESTED
PARTIES THAT HAS JUST BEEN SORT
OF DISMISSED.
AND WHAT WHAT WAS THE RATIONALE
IN THERE IN THE DOCUMENT.
I THINK IT WOULD BE BEST LEFT TO
AIR BE TO THE OBJECTIONS OF THE
LAST YEAR AND A HALF FOR EXAMPLE
THIS QUESTION BUT OVER SUPPLIES
BEEN TO SAY IT'S ALARMIST IT'S
SPECULATIVE IT'S THE RADICAL.
WILL NEVER COME TO PASS THE
FIGURE YOU SAW LA --
IN AND THE ILLEGAL ALIENS ARE
HAND OUT IS JUST AN IDEA AND WE
JUST ON OUT FOR WEBER HAPPEN --
INTO THAT I WOULD SHOW YOU
FIGURE THREE AND AND MY HAND AT
WORK AND YOU CAN NOW MEASURE IN
A OR B. SOME DATA THAT THE
PROBLEMS MANIFESTED TO A GREATER
DEGREE.
THAN THE WORST CASE ASSUMPTION
FOR TWENTY TWENTY AS A TWENTY
EIGHTEEN I THINK AGAIN WHEN ONE
LOOKS CLEARLY AT THE DATA
WITHOUT EXPRESSING JUDGMENTS
ABOUT WHAT TO DO ABOUT THIS DATA --
OF A VERY DIFFERENT CONVERSATION
BEGINS I HOPE.
THAT'S THE NATURE OF THE
CONVERSATION THAT WILL WILL NOW
UNFOLD.
AS WE HOPEFULLY MOVE TO A POINT
WITH KNOWLEDGE THE CURRENT
MARKET IS NOT THE MARKET THAT'S
NEEDED. TO ACHIEVE WITH
IDENTIFIED IN THE SCOPE AND PLAN.
OUT WHERE ONE GOES FROM THERE --
THERE ARE IMPORTANT TRADE OFFS
TO MAKE BUT TO START WITH CLEAR
DATA I THINK IS A REALLY
IMPORTANT THING --
OKAY.
THANK YOU THANK YOU VERY MUCH
MISTER KHAN WORD AND FOR TO THE
FUTURE CONVERSATIONS
[inaudible]
THANK YOU.
ALL RIGHT WE'RE NOW GOING TO
MOVE ON TO A VERY SHE PANEL WE
HAVE PAUL JACOBS WHO'S WITH THE
SENATE OFFICE OF RESEARCH WE
HAVE ROBBIE PRESSURE.
OUR TWO TWO FOLKS FROM FROM
DIFFERENT A YOU SEE LABS.
AND STEVE GLAZER IS A BIG FAN OF
OUR HIGHER EDUCATIONAL SYSTEM
WE'VE GOT --
AND THE LABS THAT IT WAS ONE OF
WHICH OR IS IN YOUR DISTRICTS
OFFERS A LAWRENCE BERKELEY
NATIONAL LAB.
WHICH IS REPRESENTED BY ROBBIE
PRESSURE HERE --
I FROM LAWRENCE LIVERMORE LAB
THAT IS INDEED IN YOUR DISTRICT
AND HAS SOME INNOVATIVE AND
INTERESTING THINGS TO TALK ABOUT --
AS WELL SO WITHOUT FURTHER ADO --
LET'S START WITH YOU MISTER
JACOBS.
THANK YOU MISTER CHAIR PARTICLES
FROM THE SENATE OFFICE OF
RESEARCH AND I'M GONNA BE GOING
OVER A HANDOUT THAT I BELIEVE
YOU GUYS HAVE IN YOUR ON MEMBERS
PACKAGE.
TELL SUPPORTING CLEAN TECHNOLOGY
BREAKTHROUGHS --
I THINK IT'S FAIR TO SAY THAT IN
ORDER FOR US TO REACH OUR SHORT
TERM AND LONG TERM CLIMATE
CHANGE GOALS AND ALSO TO HAVE AN
IMPACT.
OF IN INFLUENCING OTHER
JURISDICTIONS --
TO ADD TO IMPROVE THE CLIMATE
CHANGE GOALS READ ANY TECHNOLOGY
BREAKTHROUGHS AND BEFORE I BEGIN
I WANT TO I WANT TO ACKNOWLEDGE
THAT THE WORK REPORT BE
PRESENTING AS DERIVE FROM
REPORTS WE'VE BEEN WORKING ON
FOR MEMBERS YOUR COMMITTEE OF
CENTER Y. CASKEY AND CENTER
STERN.
IF YOU'LL TURN TO PAGE.
ONE REFERS ALL PROVIDE SOME
BACKGROUND ON THE CLEAN
TECHNOLOGY DEVELOPMENT PIPELINE.
THAT YOU TALK TO PRACTITIONERS
FOR WORKING AND TECHNOLOGY
DEVELOPMENT FOR ALL SORTS OF
TERMINOLOGY BEING REFERRED TO IN
DIFFERENT STAGES.
ARE VERY TECHNICAL THINGS LIKE
TECHNICAL READYLIFT READYLIFT
LEVEL NUMBER.
FIVE OR YOU'RE VERY VAGUE TERMS
LIKE --
COMMERCIALS EARLY DEVELOPMENT
AND WE TRY TO CATEGORIZE THE
DEVELOPMENT INTO SOME EASILY AND
CALL AND AND CLEAR
UNDERSTANDABLE --
CATEGORIES HERE STARTING WITH
FUNDAMENTAL RESEARCH.
MOVING INTO APPLIED RESEARCH
THAT MOVES INTO A DEVELOPING A
PROTOTYPE THAT NEEDS TO BE THEM
DENT DEMONSTRATE IN REAL WORLD
CONDITIONS.
AND THEN THE CURTAIN COMMERCIAL
DEPLOYMENT FINALLY AND WE'VE
ALSO PROVIDED AN EXAMPLE OF A
WELL KNOWN TECHNOLOGIST BEEN
DEVELOPED IN THE CLEAN ENERGY
SECTOR --
SOLAR PANEL YOU CAN SEE A
SNAPSHOT OF HOW THAT TECHNOLOGY
LOOKS IN EACH STAGE I HOPE IS
PROVIDE KIND OF A A BIG PICTURE
COMPREHENSIVE VIEW OF HOW
TECHNOLOGY DEVELOPS.
ALONG A VERY EXTENSIVE AND
SOMETIMES LONG PIPELINE --
WHEN SPEAKING ABOUT TECHNOLOGY
BRAKE THERE IS IT SHOULD BE
STATED THAT THE EARLIER YOU ARE
IN THE PIPELINE THE MORE LIKELY
YOU ARE TO HAVE A SIGNIFICANT
TECHNOLOGY BREAK THROUGH THIS
REALLY TO CHANGE THE LANDSCAPE
THE TECHNOLOGY THAT WE CURRENTLY
SEE TODAY?
IF YOU TURN TO PAGE TO THE HAND
OUT WE DISCUSS SOME CHALLENGES
THAT --
PARTICULARLY CLEAN TECHNOLOGY
FACES AS IT MOVES THIS PIPELINE.
THE FIRST AT A CHALLENGE THEIR
FINANCIAL SO COMPARED TO
SOFTWARE OR PHARMACEUTICAL
INVESTMENTS CLEAN TECHNOLOGY IS
CONSIDERED A VERY HIGH RISK
INVESTMENT.
THAT'S PARTLY DUE TO THE LONG
TIME LINE IT TAKES TO REALIZE
REAL WORLD APPLICATIONS FROM
CLEAN TECHNOLOGY.
AND ALSO THE HIGH CAPITAL COST
REQUIRED UP FRONT PRIVATE
INVESTMENT THAT'S USUALLY A LOT
LARGER MORE SIGNIFICANT THAN
LIKE A SOFTWARE PHARMACEUTICALS.
THERE'S OTHER POLICY STATE
POLICIES THAT MIGHT PRESENT
CHALLENGES TO MOVING TECHNOLOGY
TO THE PIPELINE THESE MIGHT BE
DUE TO INCONSISTENT IN LOCAL
PROPERTY POLICIES.
OR INCONSISTENT RESEARCH
CONTRACTING PROCEDURES THAT
WOULD INHIBIT SUMMER BEST
RESEARCHERS FROM EXPLORING IN
DEVELOPING THIS TECHNOLOGY --
WITH CLEAN TECHNOLOGIES ACTUALLY
NON FINANCIAL BARRIERS TO IF YOU
THINK ABOUT THE SCIENTISTS
WORKING IN THE HARD SCIENCES HE
PHYSICISTS.
YOU TALK ABOUT ON MATERIAL
SCIENTISTS HAVE THE SKILL SET TO
TRANSITION INTO THE
ENTREPRENEURIAL OR BUSINESS
SPACE THEY DON'T HAVE ACCESS TO
FACILITIES.
TO DEVELOP A PROTOTYPE OR TO
MANUFACTURE YOUR SMALL
DEMONSTRATION PROJECT SO THOSE
ARE NON FINANCIAL KIND OF
BARRIERS THAT CLEAN TECHNOLOGY
FACES AS IT MOVES THROUGH THE
PIPELINE.
IF YOU TURN TO PAGE. THREE FOR
PART OF OUR WORK WE REVIEWED
WE'VE RECENTLY REVIEWED FORTY
STATE PROGRAMS.
THAT PROVIDE FINANCIAL
INCENTIVES FOR THE DEVELOPMENT
OF CLEAN ENERGY OR CLEAN
TRANSPORTATION --
FROM THOSE FORTY PROGRAMS WE
HAVE ESTIMATED THE CURRENT YEAR
FISCAL YEAR EIGHTEEN NINETEEN
FUNDING LEVELS.
IN WHERE THEY ARE EXPECTED TO BE
SUPPORTING THE PIPELINE IN EACH
CATEGORY OF THE PIPING THAT WE
HAVE DESIGNATED --
IT SHOULD BE NOTED HERE THAT
ALTHOUGH THE STATE DOES NOT
REPRESENT DOES NOT --
SUPPORT FROM MILLER RESEARCH
THAT FUNDING IS USUALLY
TYPICALLY PROVIDED BY THE
FEDERAL GOVERNMENT OR THREE
UNIVERSITY.
AND FINALLY IT FREED ME FROM
WITH PASSING OF SOME IF YOU HAVE
ANY QUESTIONS WHEN TRYING TO BE
SENSITIVE TIME HERE.
FINALLY ON THE LAST PAGE PAGE
FOR WE HAVE A HANDFUL OF KEY
ISSUES FOR THE COMMUNITY
CONSIDER.
THE FIRST THE FIRST ISSUE
LOOKING BACK AT THAT --
TABLE ON PAGE THREE YOU CAN SEE
THAT THE STATE INVESTMENTS ARE
PRIMARILY FOCUSED ON THE LEFT
THE LAST STAGE OF OF THAT --
DEPLOYMENT WHICH IS A COMMERCIAL
DEPLOYMENT.
EXPERTS TYPICALLY RECOMMEND THAT
IF PARTICULARLY FOR TRYING TO
FOSTER TECHNOLOGY BREAKTHROUGHS
YOU ONE HAVE A BALANCED
PORTFOLIO APPROACH.
AND AND KIND OF OPTIMIZE WERE
YOUR INVESTMENT STRATEGICALLY
ARE ARE BEING PLACED --
REFERRING BACK TO THE LA --
DOCTOR TALKING ABOUT MARKET
FAILURES FOR CLEAN TECHNOLOGY
THEY'RE SPECIFICALLY A LARGE
DROP OFF OF FUNDING FROM THE
APPLIED RESEARCH THE PROTOTYPE
PHASE.
THAT'S WERE FEDERAL FUNDS DROP
OFF AND WE CURRENTLY SEE IN THE
TABLE DON'T REALLY SPEND A LOT
OF MONEY IN SUPPORTING THE
PROTOTYPE DEVELOPMENT.
AND THAT'S CONSIDERED A WOULD BE
CONSIDERED A A MARKET FAILURE IN
IN THE DEVELOPMENT APPROACH.
ALSO REVIEWING OUR THE PROGRAM
TO FIND IF THERE IS LIKELY
PROGRAM OVERLAP SPECIFICALLY ON
THE PROGRAMS ARE TARGETING
ENERGY EFFICIENCY.
HEAVY DUTY VEHICLES ELECTRIC
VEHICLE INFRASTRUCTURE AND THOSE
A TARGET LOW INCOME CONSUMERS.
AND PROGRAM OVERLAP CAN PRODUCE
INEFFICIENCIES INEFFECTIVENESS
OF THE PROGRAMS THAT ARE
INTENDED TO SUPPORT THIS
TECHNOLOGY DEVELOPMENT.
WE ALSO FIND THOSE
INCONSISTENCIES ACROSS STATE
AGENCIES AND HOW THEY HANDLE
THEIR INTELLECTUAL PROPERTY
POLICIES.
AND THE RESEARCH CONTRACTING
PROCEDURES PARTICULARLY OF IP
POLICY THERE IS NO STATEWIDE I
POLICY RIGHT NOW SO EVERY --
AGENCY THAT THAT'S THE
MINISTRY'S HAD A KIND OF GRANTS
ARE BASICALLY REINVENTING THE
WHEEL EVERY SINGLE TIME.
AND THERE HAS BEEN EVIDENCE THAT
SHOWN THAT I'M CLEAR IP POLICIES
AND RULES REQUIREMENTS OF LIKELY
LEAD TO THE DISCOURAGED MEANT.
A VENTURE CAPITAL INVESTMENT
THAT'S SO CRITICAL IN THAT
PROTOTYPE PHASE --
IN OUR CLEAN TECHNOLOGY
DEVELOPMENT.
AND SUMMARIZES MY PRECISION
THANK YOU.
AND IT AND WHO WOULD
[inaudible]
I'M.
WHO WOULD WHO WOULD PROMULGATE
THAT THE STATE AGENCY ID
POLICIES ACT THAT'S ON IN THE
GOVERNOR'S OFFICE COULD DO?
THAT'S SOMETHING TO LIKE SUCH A
GOOD DEAL AS AN ADVISER YES YES
[inaudible]
OKAY.
INTERESTING BILL IDEA OKAY.
SO WE'RE ALWAYS LOOKING FOR HIM.
ALL RIGHT.
THANK YOU FOR YOUR NEXT WAY FOR
MR PRESSURE DR PRESSURE.
AWESOME SO SHERMAN THANK YOU FOR
THE OPPORTUNITY TO PROVIDE
TESTIMONY BEFORE.
THE CALIFORNIA SENATE
ENVIRONMENT.
QUALITY COMMITTEE TODAY.
ALL THIS I'M VERY HONORED TO
DISCUSS STATES UP A CLIMATE
JINGLES RESOURCE SCIENCE AND
TECHNOLOGY NEEDS --
IN CONNECTION WITH MEETING THE
SB THIRTY TWO REQUIREMENTSOF
THAT CALIFORNIA DEDUCE ITS
OVERALL EMOTIONAL 40% BELOW THE
NINETEEN NINETY LEVEL
[inaudible]
UP.
SO I'VE BEEN ASKED TO PROVIDE A
BRIEF OVERVIEW OF WHERE WE ARE
AND WHAT YOU NEED TO GET THEIR
OF OF WITH AN OPPORTUNITY TO
DISCUSS SOME OF THE KEY BARRIERS
AND HE SAYS NEEDS.
UP BEFORE I AGREE AYE AYE TALK
ABOUT THOSE NEEDS EYES ONE THE
TANKS WAS TO FALL A FEW FOR
SUPPORTING THE DIESELS OF
BERKELEY LAP. FOR THE PAST
THIRTY YEARS.
WE HAVE BEEN A PARTNER OF
BIGELOW STREET OF CALIFORNIA
SINCE ITS FOUNDING [inaudible]
AND UP.
ART ROSENFELD ROOM SOME OF YOU
MAY KNOW.
WAS BURKE LAB SCIENTIST.
OF WHAT IS CALLED AN ACTIVIST
AND A PUBLIC SERVANT.
ACROSS FROM THE FULL OF ENERGY
EFFICIENCY.
UP CALIFORNIA LONGSTANDING
LEADERSHIP IN ENERGY POLICY AND
SPECIFIC SPECIFICALLY IN ENERGY
EFFICIENCY SEARCH.
HAS BEEN A SIGNIFICANT
CONTRIBUTOR TO SOMETHING CALLED
A DOZEN FROZEN FOR EFFECT.
THE FACT THAT PARK UP
ELECTRICITY USE IN CALIFORNIA
HAS NOT INCREASED FOR DECADES.
WHAT IT DOES INCLUDE A 50% REST
OF THE COUNTRY?
UP IS IS STARTING IN NINETEEN
SEVENTY THE COMPANIES OF OF A
NINETEEN SEVENTIES A PRODUCTIVE
USE OF WHAT IF I LIKE TO CITY
ELECTRICITY I GUESS.
UP UP AND THAT IS PRIMARILY
BECAUSE THE RULES IN FULL EFFECT
ARE DRIVEN PRIMARILY BY --
IMPROVEMENT IN ENERGY EFFICIENCY
[inaudible]
UP.
TODAY I LEAVE THE ENERGY
TECHNOLOGY AREA AT BERKELEY LAB.
THIS PARTICULAR AT SUCH AREA OF
THE LAB IS COMPRISED OF MORE
THAN SEVEN HUNDRED RESEARCHERS
AND STOP.
WHO SPEND THEIR PROFESSIONAL
LIVES PURSUING THE ANSWERS TO
SOME OF THE MOST PRESSING
CHALLENGES THAT WE FACE TODAY?
I IN ADDITION TO OUR PRIMARY
WILL PRODUCE FUNDED BY.
PRIMARILY BY THE BOTTOM ENERGY
MUCH OF THIS RESEARCH IS ALSO.
COMPUTER THE SUPPORT FROM THE
STATE OF CALIFORNIA.
MOST IMPACTFUL LEAVE BEFORE NAY
FROM CALIFORNIA IS A COMMISSION.
EPIC PROGRAM WHICH IS FORMALLY
KNOWN AS THE PIPP PROGRAM.
AND I ESPECIALLY WANT TO TIE
OUTGOING CHAIRMAN VISOR MILLER.
AND AND THE INCOMING TEACHERS ON
MEN HAWK SHIELD.
FOR THE TIRELESS WORK UNDERSTAND
THE CHALLENGES CALIFORNIA
ADVANCED TO SUPPORT RESEARCH
THAT DEMONSTRATES SOLUTION TO
THOSE.
CHALLENGES JUST TO GIVE AN
EXAMPLE.
WELL THE AP PROJECTS FUNDED IN
YOUR DISTRICT.
OUR ANALYSIS SHOWS THAT THAT THE
TECHNICAL POTENTIAL THE TO
CANNOT CONNECT ECONOMIC
POTENTIAL OFF OF THE ONE DOLLAR
INVESTED IN RESEARCH.
HAS THE POTENTIAL TO LEAD TO
ALMOST HUNDRED DOLLARS SAVINGS.
AND THAT IS A TESTAMENT TO THE
FACT THAT.
FUNDING RESEARCH BEES OFF.
NOT ORDER THANK GOD --
CAUGHT YOUR MILLION NICHOLS FOR
BECAUSE SCOTT WAS A SUPPORTS
QUITE A BIT OF RESEARCH AT THE
LAB INTENSE AND DOING A LOT OF
DIFFERENT AND MOMENT ANALYSIS.
NOT GOING BACK TO THE TOPIC OF
THE DAY AT WATER DONE HE SAYS
SCIENCE AND TECHNOLOGY NEEDS AND
WELL THE GAPS IN DUMPS A MEETING
THERE TWENTY THIRTY GOALS.
I WOULD LIKE TO HIGHLIGHT A FEW
THINGS.
FIRST OF ALL YOU MAY KNOW THAT
THE GREENHOUSE GAS EMISSIONS.
TWO THOUSAND SIXTEEN ALREADY
MADE A TWENTY TWENTY TARGET
WHICH IS VERY COMMENDABLE VERY
COMMENDABLE FEAT.
NOW THE QUESTION IS FROM HERE TO
TWENTY THIRTY WHAT ELSE WHAT ARE
THE THINGS THAT NEEDED.
SO FOR ACHIEVING THAT TWENTY
THIRTY GOALS WE WILL NEED A
MULTI PRONGED APPROACH.
IT IS VERY IMPORTANT TO DATE DE
CARBONIZED TRANSPORTATION SECTOR.
OF THE INDUSTRIAL SECTOR AND THE
BUILDING SECTOR BECAUSE THEY ARE
THE TOP THREE GREENHOUSE GAS
EMITTERS IN THE STATE.
BUILDING HEATING IS PRIMARILY
BASED ON NATURAL GAS AND I THINK
I BELIEVE I HEARD SOME
DISCUSSION RELATED TO THAT
EARLIER TODAY YEAH.
AND SO ELECTRIFICATION A
BUILDING HEATING VERY VERY VERY
IMPORTANT IN ACHIEVING FUTURE.
DAMAGING GOALS OF CALIFORNIA.
IT ALSO REALLY IMPORTANT TO
UNDERSTAND THE ROLE OF NON
CARBON DIOXIDE REYES GOT A
GREENHOUSE GAS EMISSIONS.
A PARTICULARLY FROM THE CRITICAL
JUST SECTOR AND REFRIGERATION.
OR DO YOU TO PLEASE TO US
SOMEONE HE'D RAVES ARE THERE IS
SIGNIFICANT REQUIREMENT FOR AIR
CONDITIONING IN IN THE STATE OF
CALIFORNIA.
AND AND THE REFRIGERANT THAT WE
USE TODAY HAVE A VERY HIGH
GLOBAL WARMING POTENTIAL AS
COMPARED TO COVERED EXCITE.
THAT'S AND I THINK THAT YOU HAVE
TO DATE BE A LOT OF ATTENTION
[inaudible]
TO UP.
SWITCHING TRANSPORTATION SECTOR
TO RENEWABLE RESOURCES IS IS
VERY VERY IMPORTANT BECAUSE ALL
THE DATA INDICATE THAT THAT IN
FACT A THE THE THE FUEL USE AND
TRANSPORTATION SECTOR IN IN
CALIFORNIA'S INCREASING.
AND AND AND SO IT'S VERY
IMPORTANT THAT IF YOU WANT TO
ACHIEVE THESE TARGETS THE SWITCH
TO RENEWABLE.
ENERGY SOURCES FOR
TRANSPORTATION.
ALSO I END UP TO BE ABLE TO HAVE
A VERY AGGRESSIVE OBVIOUS
JUNIPER BEFORE YOUR GOALS.
AND IN OUR OPINION THE RESEARCH
SHOWS THAT THE DOCTOR PROBLEM
VERY BECOME WHAT'S MORE
PENETRATION OF INTERVAL.
SO WE HAVE TO FOLLOW
TECHNOLOGIES AND STRATEGIES TO
SOLVE THE DARKER PROBLEM
[inaudible]
I'D UP.
CLOSE THE CONVERSION EXTENT
STORAGE BASICALLY I'LL TALK
ABOUT THE DENTIST COMBINATION OF
STORIES AS WELL AS HOW DO YOU
MANAGE THE NOTES IN THE BUILDING
A HOUSE AND AND A COMBINATION OF
BOTH THE STRATEGIES RIGHT
[inaudible]
UP.
THE CONVERSION OF THE GOD A
CULTURAL FOR US A SOLID WASTE
STREAMS.
AS WELL AS YOU DO A SHORT LIVED
CLIMATE POLLUTANTS LIKE METHANE.
INTO VALUABLE CARBON NEGATIVE
AND GOVERNOR TO BUY YOUR FIELDS
AND BIOPRODUCTS.
USING BIOTECHNOLOGY IS GOING TO
VERY IMPORTANT.
BUT IT FACES SOME UNIQUE
TECHNICAL CHALLENGES WHICH
REQUEST FOR THE RESEARCH AND IT
GOES BACK TO WHAT MR NICHOLS WAS
SAYING.
THAT IT IS OVERLY STUDIOUS AS
WHICH IS NEEDED TO ACHIEVE SOME
OF THOSE BREAKTHROUGHS.
AND FINALLY IN TOM SAW FOR THE
ENERGY.
OR DOING OF WHAT ARE SOME OF THE
CHALLENGES ONE THING WHICH I
WOULD LIKE TO HIGHLIGHT IS V.
ALSO MUST DRAMATICALLY REDUCE
ENERGY USE ASSOCIATED.
MOVING IN THE AD THE SALINITY
WATER THAT SCARED BECAUSE
DESALINATION OF WATER IT IS VERY
VERY AND AND AND MANAGEMENT.
SO.
LBNL THE BERKELEY LAB HAS BEEN
PARTNERING WITH CALIFORNIA
UTILITIES AND PRIVATE SECTOR
PARTNERS TO CREATE FLEXIBLE
BUILDING AND INDUSTRIAL CUSTOMER.
ENERGY LOADS.
THAT CAN HELP INTEGRATE MORE
RENEWABLE ENERGY TO THE GRID.
UP FOR EXAMPLE SIMILAR POLITICAL
ENERGY STORAGE MANY CUSTOMER
LORD SUCH AIR CONDITIONING.
OR WATER HEATING CAN BE CHARGED
AND DISCHARGED RIGHT AND THAT
COULD YOU CAN MATCH IT WITH A
SWORD OR LOOK A SORT OF
GENERATION.
ALL MORE RESEARCH IS NEEDED
OLDER TO DEVELOP COMMON OPEN
INTEROPERABLE METHODS FOR
CONTROLLING AND COMMUNICATING
WITH THE CUSTOMER AND USE LOTS.
R. L. BEEN AND AN L. IS ALSO THE
BURKE LABS AS CONTINUING FORM
WHAT FUNDED BY A CITY YOU SEE.
TO ESTIMATE THE SIZE OF DEMAND
TO SPONSOR RESOURCES.
UP RESOURCE POTENTIAL INCLUDING
SHIPPING LORDS WITH DYNAMIC
PRICING AND SHIFTING DEMAND.
DOCTOR Y USE OF RENEWABLE
ENERGY SO THAT'S ONE STRATEGY
HOW DO YOU MIND IS THE LOOK.
SECOND STUDY AS YOU POINTED OUT
IS ENERGY STORAGE.
UP SO THE BERKELEY LAB AND OTHER
COLLEAGUES OF OTHER LABS AND THE
GOVERNMENT'S TRADITIONS AND EVEN
A PRIVATE RESEARCH LABS.
HAVE BEEN WORKING ON VARIOUS
ENERGY SOURCE TECHNOLOGIES
INCLUDING ELECTROCHEMICAL SORT
OF TECHNOLOGY AND THOMAS WAS
TECHNOLOGIES.
CHALLENGES ELECTROCHEMICAL
STORAGE SUCH A LEAVE HIM ON
BATTERY.
IS GOING TO BE SAFETY AND THIS
CASA DEAL CRITICAL MATERIAL SUCH
AS CORD AND I HEARD IT IN THE
FEWEST BOTTLE THAT WAS DISCUSSED
QUITE A BIT.
AND WHICH IS A SEE THIS
CHALLENGE.
V. HAVE ACTUALLY EMBARKED OR
DELETE FUNDED PROGRAM TO SOLVE
ALL THESE PROBLEMS DISCUSSES THE
RESOURCES OF THE COURT WHICH IS
ABOUT YOU SIGNIFICANTLY IN
TODAY'S THE TIME ABOUT.
THREE THE TWO APPROACHES ONE IS
HOW DO YOU DO FOR A DOUBLE UP.
A LITTLE ABOUT THE WAS DOES NOT
USE ANY COURT THAT'S CRITICAL
WARD FORGET HIM ON BATTERY.
AND SECOND ONE IS A RECYCLING
GOLF THE CURRENTLY COMING
BATTERIES SO THAT HE COULD
RETRIEVE A LOT OF THESE MINERALS
FROM THE OF THE FOR THE THE THE
THE BATTERIES THESE ARE BOTH
GOING TO PLAY A VERY IMPORTANT
ROLE IN THE FUTURE.
AND AT THE SAME TIME THOMAS
STORAGE IS ANOTHER STRATEGY IF
YOU LOOK AT THE BUILDING.
ALMOST 50% ENERGY GOES IN
HEATING OR COOLING.
SO THOMAS STORAGE CAN BE ANOTHER
VIABLE OPTION SO THEY CAN
PROVIDE FOR TO DISTRIBUTE IT AND
THE DISTORTED.
AS WELL AS CAN PROVIDE VERY ZONA
CLIMATE CONDITIONING OF THE
BUILDING WHICH WILL LEAD TO
SIGNIFICANT.
A NEW A OF EMPLOYMENT IN THE IN
THE ENERGY EFFICIENCY OF THE
BUILDING RIGHT RIGHT.
AND FINALLY ONE ONE TO ADMIT IT
BUT I'M SURE AS HELL PEOPLE
MIGHT WANT TO HAVE THEIR BEDROOM
WARM IS AT EIGHT BUT THEY DON'T
NEED THE LIVING ROOM THAT THEY
DON'T NEED THAT EVEN TO THE ALL
THIS RESOURCE YES YOU KNOW HOUSE
WARM YES.
YOU'RE NOT THAT CAN BE ENABLED
IF YOU HAVE A STORAGE IN THE IN
THE WALLS OF THE BUILDING.
AND AND ONE AND LOST ONE AND
REYES STRATEGY IS SOMETHING ON
THE GRID INTERACTIVE EFFICIENT
BUILDING SO TODAY.
IF YOU LOOK AT A BROADLY
SPEAKING.
LOOK AT THE AMOUNT OF THE
BURNING BODIES SEPARATE AND
WALKED IN THE SUPPLY FROM THE
GREAT.
BUT WHAT IS REALLY IMPORTANT IS
OUR IS THE EFFICIENCY OF THE
SYSTEM LEVEL YOU'RE ARE SCANNED
THE BUILDING CONTINUOUSLY
INTERACT WITH THE GOOD.
SO THAT WE HAVE A HIGHLY
EFFICIENT.
SYSTEM WHICH INCLUDE BORDER OF
THE DEMAND SIDE AND THE SUPPLY
SIDE AND LOOKING AT I VERY
HOLISTICALLY.
AND IN FACT DEPARTMENT OF
ENERGY'S DIVERTING SIGNIFICANTLY
IN THAT DIRECTION BEFORE NEED A
LOT OF RESEARCH IS SOMETHING
CALLED A GRID INTERACTIVE
EFFICIENT BUILDINGS YEAH.
UP CONTRIBUTOR A MUCH TIME I
JUST WANT TO CONCLUDE THAT UP
YOU KNOW V. DIVIDE THE STATE HAS
MADE ENORMOUS PROGRESS IN
ACHIEVING DEEP REDUCTIONS.
UP IENEN VIEILLE NEEDED A CgA
A ROBUST MULTI PRONG STUDY
TOUCHES DEDUCTIONS.
AND I WANT TO ACHIEVE THAT GOAL
WHAT ROLE MR DICK UPSET.
BIGGEST CHALLENGES IN AT LEAST
IN MY OPINION IN THE FREE LOVE
CANADIAN ENERGY TECHNOLOGY IS
THAT IF THERE IS A NEW BIXEL
TODAY.
IT TAKES ALMOST FIFTEEN YEARS
FOR THAT BREAK THROUGH THE
MATERIALIZE INTO A VIABLE MARKET
READY TECHNOLOGIES RESOLUTION A
STATE OF CALIFORNIA CAN PLAY A
VERY SIGNIFICANT ROLE. TO TO
BRIDGE THAT GAP.
AND UNDER THAT I'LL JUST MOVE
FUNDING BUT FUNDING OF COURSE
YES MA'AM.
YEAH BUT WITH THE BE SURELY THE
SAME REASONS WHY IT'S HARD TO
GET PRIVATE SECTOR FUNDING
BECAUSE IT'S SO SPECULATIVE
RIGHT.
MILT EMILY HOW HOW DOES HOW DOES
THE STATE FIGURE OUT A WAY OF
PICKING LOSE I I CAN I IF YOU
LOOK AT IT IT'S NOT AS YOU
TECHNOLOGY I THINK I WILL
BROUGHT UNDER TO ANY HARDWARE
TECHNOLOGY.
IT TAKES A LOT OF EMPIRICAL DATA
SUGGESTS THAT IT TAKES ROUGHLY
FIFTEEN TO TWENTY IS EVEN
RESPECTIVE OFF THE END OF
LOCATION.
SO FOR EXAMPLE IF YOU WANT TO
LOOK AT NEXT COMPUTER TECHNOLOGY
STILL TO GET FIFTEEN TO TWENTY
YEARS.
BECAUSE HARDWARE IS JUST A
TALENTED IS A LOT OF TRIAL AND
ERROR.
SO ONE OF THE THINGS WHICH WE
HAVE STARTED AT THE LOT AND
ORDERED PARTS OF DEAL HE HAS
STARTED LOOKING INTO SOMETHING
CALL SIGNS OF SKILL UP.
HOW DO YOU START DOING A LAW OF
SINES RIGHT IN THE BIG INTO
UNDERSTAND WHAT ARE THE
CHALLENGES THAT YOU WOULD FACING
SKINNING ABOUT TECHNOLOGY?
SO RATHER THAN GOING FROM A
LINEAR MODEL OF INNOVATION VERY
OF DISCOVERY THAN.
ENGINEERING THAT MARKET LOOKING
OVER THE CIRCULAR MORTAL OFF OFF
OFF ARE DOING --
OF THE DISCOVERY TO DEVICES.
AND THAT'S NOT SOMETHING WHICH I
WOULD SAY IS IS A PARADIGM SHIFT
IN HOW YOU DO.
A TECHNOLOGY DEVELOPMENT AND I'M
FINDING IT IS A QUITE FRANKLY
WILL HAVE TO SUPPORT THAT KIND
OF A MODEL IF.
THANK YOU THANK YOU ALL RIGHT
I'VE NEXT THAT TO HEAR FROM A
DIFFERENT PERSPECTIVE TALK ABOUT
ANOTHER INTERESTING SERIES OF
INNOVATIVE TECHNOLOGIES AND
DOCTOR BONE.
THANK YOU.
CAROLYN AND MEMBERS OF THE
COMMITTEE.
THANK YOU FOR GIVING ME THIS
OPPORTUNITY TO SHARE LAWRENCE
LIVERMORE NATIONAL LABS THOUGHT
ON SOME TECHNOLOGIES THAT WE
BELIEVE CALIFORNIA NEEDS TO
PURSUE TO REACH SOME OF ITS
CLIMATE GOALS.
MY NAME IS STEVE BOWLING ALLEY
THE ENERGY AND HOMELAND SECURITY
PROGRAM AT LIVERMORE.
I'M ALSO GRATEFUL THAT THIS IS A
LITTLE MORE RELAXED SETTING THAN
THE PREVIOUS TIME I WAS IN FRONT
OF THIS COMMITTEE WHEN I WAS ON
GAS SUPERVISOR.
AND THE HEAD OF THE DIVISION OF
OIL AND GAS DURING A VERY
CHALLENGING TIME IF YOU'LL
REMEMBER FEAR OF SENATOR.
THE THE STATE FACES MANY
CHALLENGES BUT ONE OF THE MOST
SIGNIFICANT AND CHAIR LOCAL MUCH
MORE RESTED FOR THE FACT THAT.
I AM ACTUALLY I SLEEP AT NIGHT
NOW.
WE ARE TWINS WELL AND MY KIDS
ARE A LITTLE OLDER SO I I'VE
BEEN IN THAT SLEEPLESS STAYS.
WITH BACK A FEW YEARS AGO --
WELL THE CHALLENGES THE STATE
FACES INSURE NICHOLS MENTIONED
THIS IS THE CHALLENGE OF
EMISSIONS FROM FROM --
VEHICLES.
IT'S A HUGE CHALLENGE AND AND
ONE THAT'S NOT EASILY TACKLED.
IF YOU ADD THE ENERGY.
EMISSIONS FROM THE PRODUCTION OF
OIL IN THE STATE AND THE
REFINING OIL THE STATE. TO THE
EMISSIONS OF ROUGHLY TWENTY
BECAUSE IN THE STATE OF ALL
TYPES --
THAT ACCOUNTS FOR ABOUT HALF OF
THE STATE'S EMISSIONS THAT'S
ABOUT TWO HUNDRED AND TWENTY
FIVE MILLION TONS.
OF CO TWO A YEAR.
AND THEN DEALING WITH THAT.
IS IS IS INCREDIBLY CHALLENGING
BECAUSE EVEN BY OPTIMISTIC.
PROJECTIONS OF OF THE BUILD OUT
OF THE ELECTRIC --
FOR VEHICLE FLEET IN THE STATE.
OIL AND AND I I A GASOLINE AND
DIESEL FUEL WILL STILL BE THE
PREDOMINANT FUEL --
WELL INTO THE MID CENTURY --
EVEN IF YOU HAVE A BATTERY --
TECHNOLOGY BREAKS THROUGH --
ENERGY DENSITY DOUBLES OR
TRIPLES COST DECREASE --
AND SAFETY IMPROVES.
ITS FIFTEEN YEARS BEFORE YOU CAN
GET THAT INTO THE MARKET AS YOU
JUST HEARD --
AND THE HALF LIFE OF AUTOMOBILES
IN THE STATE IS FIFTEEN YEARS
ROUGHLY.
SO SO THERE'S THERE'S NO SILVER
BULLET HERE IN IN ADDRESSING
THIS ISSUE.
NOW FORTUNATELY THE STATUS HAD
THE FORESIGHT TO PROVIDE
SIGNIFICANT FINANCIAL MECHANISMS
FOR INCENTIVIZING NEW APPROACHES
AROUND CARBON PRODUCTION OF THE
TRANSPORTATION --
A SECTOR AND THAT'S THROUGH LOW
CARBON FUEL STANDARD --
THE FINANCIAL SICK IS THE
INCENTIVE IS SIGNIFICANT IT IT
IT OBVIOUSLY IT'S A MARKET --
AND IT AND IT GOES UP AND DOWN
BUT IT IT MAY ACTUALLY --
PROVIDE OPPORTUNITIES FOR D.
CARBONIZATION PORTION OF THIS --
YOU KNOW MANY ANALYSTS ANALYSTS
SUGGEST THAT THE STATE NEEDS.
TO SECURELY TO DISPOSE OF ITS
CURRENT EMISSIONS ALONG WITH
SOME CO TO CAPTURE FROM THE
ATMOSPHERE.
DEEP UNDERGROUND SOME BILLS
COMMONLY REFERRED TO AS CARBON
CAPTURE AND STORAGE FOR CCS
SOMETIMES C. C. U. S. CARBON
CAPTURE UTILIZATION AND STORAGE.
AND YOU KNOW DO IT DESPITE ITS
LOW PROFILE THE TECHNOLOGY IS
ACTUALLY QUITE MATURE.
THEIR SIXTEEN PROJECTS OPERATING
WORLDWIDE.
THERE'S GONNA BE FIVE OR SIX
MORE BY --
TWENTY TWENTY AND THESE ARE A
ROBUST PROJECTS FAIRLY LARGE --
DEBTORS SEQUESTERING MILLIONS OF
TONS OF CO --
TWO AND THERE HAVE BEEN A SERIES
OF ADVANCES IN HOW.
TO MONITOR THE INJECTION OF CO
TWO WITH OTHER RISKS SUCH AS
INDUCED SEISMICITY.
SO THE TECHNOLOGICAL STAGE HAS
BEEN SET FOR THE STATE TO REMOVE
SOME OF ITS TRANSPORTATION
MISSIONS BY CAPTURING CO TWO
REFINERIES AND ETHANOL PLANTS.
AND SEQUESTERING IT SECURELY
UNDERGROUND.
AND IN ADDITION THE STATE HAS
THE OPPORTUNITY EARLIER --
YOU ALLUDED SENATOR TO THE
ELIMINATION OF THE OIL AND GAS
INDUSTRY IN THE STATE --
IF YOU THINK ABOUT BUILDING A
ROBUST CARBON SECRET GEOLOGIC
CARBON SEQUESTRATION INDUSTRY IN
THE STATE.
YOU HAVE THE OPPORTUNITY TO TURN
THE OIL AND GAS INDUSTRY IN TO
FROM IN ADMITTING--
INDUSTRY INTO A SEQUESTERING OR
REDUCING --
INDUSTRY.
COME.
AND IN THE PROCESS YOU CAN OF
REDIRECT THE ACTIVITIES OF A
HUNDRED TO A HUNDRED FIFTY
THOUSAND DIRECT HIGH PAYING JOBS
IN THE OIL INDUSTRY FOR THE
PURPOSE OF THE CARBONIZATION.
THE INDUSTRY HAS ESSENTIAL
EXPERTISE FOR UNDERGROUND
INJECTION.
AND COMBINED WITH THE STATE'S
NEW WELL OF PREPARED REGULATIONS.
RECENTLY APPROVED BY THE OR
BOARD FOR GEOLOGIC SEQUESTRATION --
IT'S IT'S A COMBINATION FOR A A
SAFE AND SECURE PROGRAM --
IT PROVIDES A CCS PROVIDES A
MECHANISM TO TRANSFORM A CARBON
pCENTRAL VALLEY JOBS AND MANAGE A
PORTION OF THE STATE'S
TRANSPORTATION EMISSIONS.
THE STATE IS BLESSED WITH
EXCELLENT GEOLOGY FOR THIS AN
INITIAL STUDIES INDICATE THAT
OVER TWO BILLION TONS OF CO.
TWO COULD BE SEQUESTERED IN JUST
THE DEPLETED OIL RESERVOIRS OF
THE STATE ALONE.
THERE ARE OTHER RESERVOIRS IN
THE STATE THE COULD HANDLE CO
TWO BUT JUSTIN THAT ALONE.
IS FIFTY MILLION TONS A YEAR
POTENTIALLY.
THAT NUMBER ACTUALLY EQUALS THE
EMISSIONS THAT ARE GENERATED BY
THE IN STATE PRODUCTION OF OIL
AND THE BURNING OF THAT OIL
PRODUCED IN THE STATE.
SO YOU ACTUALLY HAVE THE
OPPORTUNITY AND IF YOU THINK
ABOUT THIS IS A IS A VIABLE
TECHNOLOGY --
TO CREATE AN INDUSTRY THAT IS
CARBON NEUTRAL AND AND LEAD THE
WORLD IN THAT WAY.
THE CHALLENGES THAT THE LOW
CARBON FUEL STANDARD CREDITS
PROBABLY AREN'T ENOUGH AND AND
TO GROW A VIABLE CO TWO STORAGE
INDUSTRY THE STATE NEEDS.
TO ASSESS THE REGULATORY PATH.
ADELINE AND STREAMLINE THE
PERMITTING REQUIREMENTS OF THE
AIR RESOURCES BOARD THE DIVISION
OF OIL AND GAS.
THE STATE AND REGIONAL WATER
BOARD STATE LANDS COMMISSION AIR
DISTRICTS COUNTIES.
AND TO CONSIDER SEQUEL.
EVEN WITH A FINANCIAL INCENTIVE
FILE CASF THE PERCEIVED HIGH
REGULATORY RISK.
AND THE AND THE SEVERAL YEARS
HIGHLY UNCERTAIN SLUG THROUGH
THE AND THROUGH THE PERMITTING
MAYES.
MAY PREVENT THE BUILDING OF MUCH
NEEDED PROJECTS.
I EMPHASIZE A FIFTY MILLION TONS
YEARS ONLY 25% OF THE SOLUTION.
AND OTHER APPROACHES ARE NEEDED.
THERE'S HUGE POTENTIAL IN
AGRICULTURAL SOILS FOR LONG TERM
CARBON STORAGE ESTIMATES
INDICATE THAT THE RETURN OF SOIL
CARBON.
OF THE AGRICULTURAL STORES SOILS
OF THE STATE OF IOWA ALONE --
TO PRE DUST PULLED.
PRE DECIBEL LEVELS BECAUSE THE
QUEST FOR A HUNDRED BILLION TONS
OF CO -- TWO
THIS SUGGESTS THAT THE
AGRICULTURAL SOILS OF CALIFORNIA
ALSO HAVE PROBLEMS FOR SIMILAR
SIMILAR LEVELS OF STORAGE.
HOWEVER OUR SCIENTIFIC
UNDERSTANDING AND VIABLE
PATHWAYS FOR STORAGE AND SO
SOILS LONG TERM.
OUR EMBRYONIC COMPARED WITH CCS
AND MUCH MORE WORK REMAINS TO BE
DONE.
THERE ARE ANOTHER OTHER EMERGING
TECHNOLOGIES FOR EXAMPLE
PYROLYTIC CONVERSION OF FOREST
WAYS TO BIO FUELS.
THE STATE HAS A PLAN --
TO TO THIN A MILLION ACRES A
YEAR -- THAT
PRODUCES OF BIO --
THAT PRODUCES FOREST WASTE.
THAT IF YOU BURN IT YOU GET A
SEAT.
ZERO TWO EMISSIONS --
IF YOU LET IT ROT YOU GET CO TWO
EMISSIONS BUT IF YOU TURN IT
INTO BIO FUEL YOU CAN REDUCE.
THE THE ABOUT.
AND MANAGE THE CO TWO THAT COMES
FROM THAT AND AS THE QUESTRADE
UNDERGROUND --
SO --
PYROLYTIC CONVERSION OF FOREST
WAYS TO BIO FUELS DIRECTOR
CAPTURE AND CATALYTIC CONVERSION
OF THE CO TWO TWO USEFUL
PRODUCTS INCLUDING
TRANSPORTATION FUELS.
ARE TECHNOLOGIES THAT ARE ARE
ARE ARE ARE BEING WORKED ON
RIGHT NOW.
ALL THESE ARE MAKING PROGRESS
BUT ARE FAR FROM READY TO
ADDRESS THE IMMEDIATE NEEDS THAT
THE STATE HAS.
IN UMMARY WE SEE CCS IS A
PROVEN VIABLE TECHNOLOGY TO HELP
THE STATE IN BOTH THE SHORT AND
LONG TERM. TO DEAL WITH
INDUSTRIAL AND TRANSPORTATION
EMISSIONS.
THIS IS REALLY A TRANCE
TRANSITIONAL TECHNOLOGY WE'RE
NOT GOING TO STORE OUR WAY OUT
OF THIS PROBLEM.
BUT WHAT WE NEED TO DO IS BUY
TIME.
AND AND TIME IS WHAT WE DON'T
HAVE IF WE'VE BEEN WORKING ON
THIS PROBLEM AGGRESSIVELY --
FROM THE EARLY NINETIES WHEN IT
WAS CLEAR IT WAS A PROBLEM WE
MIGHT BE IN A DIFFERENT POSITION.
BUT WE NEED ALL ALL OPTIONS ON
THE TABLE HOW DO YOU CAPTURE THE
CARBON AS PART OF THIS.
SO -- THE
ACCOUNT WELL IF YOU CAN'T YOU
CAN CAPTURE FROM OF THE
REFINERIES.
IF YOU HURT CARBON CAPTURE AND
VICES DEVICES ON THE RISE THE
NICE THING ABOUT REFINERIES IS
pIS THAT THE CO TWO STREAM IS
RELATIVELY CLEAN --
FAIR AND BUT YOU CAN CAPTURE IT
DIRECTLY FROM THE AIR AS WELL IN
IS AS YOU HEARD CHAIR NICHOLS
THAT'S THAT'S NOT A TECHNOLOGY
THAT'S QUITE READY FOR PRIME
TIME IT'S MAKING GOOD PROGRESS.
BUT YOU HAVE THE OPPORTUNITY TO
ALSO THEN TAKE OUT CRITERIA
POLLUTANTS AND OTHER TOXICS.
SPECIALLY DISADVANTAGED
COMMUNITIES OR AROUND THE OIL
FIELDS.
AND SUCK ALL THAT STUFF OUT AND
PUT IT UNDERGROUND SO THE CCO TO
THE GOES UNDERGROUND DOESN'T
HAVE TO BE PERFECTLY PURE.
FACT THE ETHANOL PLANTS ACTUALLY
SYQUEST TO THE FOOD INDUSTRY AT
A LOSS --
REFINERIES DON'T SEQUESTER CO
TWO RIGHT NOW THERE'S A FAIRLY
SIGNIFICANT PRODUCER DO IT.
ARE THEY PUTTING YOUR COKE. TO
GET BACK IN THE ATMOSPHERE.
GROWTH OF OR OR THE RICE
PRODUCERS PUT IT IN TO FUMIGATE
THEIR THEIR SILOS THINGS LIKE
THAT CRIME --
I SEE YOU SHAKING YOUR HEAD YOU
KNOW IN NOT IN YOUR HEAD DOCTOR
PRESSURE YOU YOU'RE INTO THIS
TECHNOLOGY OR I MEAN I THINK --
THEIR TICKETS CONTROVERSIAL I
SUPPOSE RALLY HAVE SOURCE
CAPTURE IS STILL VERY EXPENSIVE
RIGHT IT IS A AND THAT IS GOING
TO FUNDAMENTAL CHALLENGE BECAUSE
I MEAN CHEMISTRY IS USED IN
SEPARATING THE AT THE SHE WOULD
DO FROM THERE.
AND I MEAN KIM IS IS --
IS ENERGY INTENSIVE PROCESS BUT
JOBS ALL THIS YEAR DO YOU HAVE
BEEN HEATED UP. TO GET THIS YOU
WILL BE OUT.
SO YOU HAVE TO LOOK AT THE WORLD
ENERGY ACCOUNTING OF THE CARBON
SICK THE SENATE THERE ARE NEW
TECHNOLOGIES COMING ALONG THERE
ARE LESS ENERGY INTENSE YOU HAVE
TO DO SOMETHING WITH.
WITH THE ONES YOU CAPTURE IT
RIGHT AND YEAH I MEAN HAVING
YOUR STRESS TAUGHT IT FINALLY DO
SO I GUESS THE QUESTION IS GOING
TO BE THAT IF YOU'RE IF YOU'RE
GONNA CAPTURED IT.
THE AFTER DAHLE SUPPORTED SUMMER
TO SEQUESTER AGAIN SUGGESTED I
TWENTY CAPTURED RIGHT RIGHT THIS
A BIG DECISIONS TO BE MADE --
BUT ON THE OTHER HAND AS YOU AS
YOU POINTED OUT THE FACT OF THE
MATTER IS THAT.
YOU HAVE A ABOVE IN TERMS OF THE
THROUGH THE BPM OF CO TWO WE
ALREADY HOUSE GASES IN THE IN
THE ATMOSPHERE.
AND SO ARE A VALID ALLOCATED
SIXTY FIFTY PPM THAN.
I MEAN THERE'S NO WAY OUT CAM
YOU HAVE.
I'M A PRAGMATIST IN THIS WAY
THERE ARE LOTS OF REASONS THAT
EVERYTHING IS HARD THAT'S WHY
THE PROBLEM IS HARD RIGHT.
BUT YOU'VE GOT TO YOU'VE GOT TO
PUT EVERYTHING ON THE TABLE AND
TO AND FIGURED OUT THERE ARE
THERE IS A REFINERY RIGHT IN THE
MIDDLE OF BAKERSFIELD THAT YOU
CAPTURE THAT CO TWO INPUT RIGHT
UNDERGROUND IN THE OILFIELDS
THERE.
THERE ARE THERE ARE.
RELATIVELY LOW HANGING FRUIT.
THE TREES CALL BUT THE FOR FOR
THESE VERY CHALLENGING PROBLEMS
BUT IS YOUR EASY THE PROBLEM TO
BE SOLVED RIGHT OF COURSE.
OKAY ALRIGHT THANK YOU VERY MUCH
AND YOU BALL.
YOU'VE OBVIOUSLY DONE THE STOCK
DOCTOR I WOULD REALLY APPRECIATE
THANK OVER IT.
AND AND YOU KNOW I'VE GOT I'VE
CAUCUS STARTING ALREADY SRT
STARTED SO WHEN WE GOT TO HEAR
PUBLIC COMMENTS I REALLY DO
APPRECIATE IF YOU'RE YOU'RE
ACTUALLY PRESENTATIONS I LOOK
FOR TO FONG UP WITH EACH OF YOU.
ON SEVERAL ISSUES SELF THANK YOU
FOR BEING HERE THANK YOU RUNNING
IN FRIGHT IF YOU'RE INTERESTED
THANKS FOR ALL THE WORK THAT
WENT BEHIND IT IS THAT.
THE REALLY IMPORTANT THING.
ITSELF OKAY.
LOOKS SO I I I BEG OF YOU TO BE
SHORT -- AND
AND CONCISE AYE MINUTES STRICTLY
LIMIT EVERY COMMENT TO TWO
MINUTES IF YOU COULD DO IT
SHORTER I WOULD REALLY
PERSONALLY BY LILY HAVE
DEMOCRATIC CAUCUS --
ALREADY BEGUN SO UNDERSTOOD
FEATURE ALEX JACKSON WITH ENERGY
SEE I JUST WANTED TO RESPOND TO
SOME THE CONVERSATION EARLIER
WHICH SEEM TO SUGGEST AS WE LOOK
AHEAD WE'RE GOING TO FACE THE
FINAL TENSION BETWEEN
AFFORDABILITY AND A SAFE CLIMATE.
AND I THINK THAT HAS NOT BEEN
CALIFORNIA'S EXPERIENCE THUS FAR --
AS OUR HOMES BUILDINGS AND
VEHICLES GET MORE EFFICIENT
CALIFORNIA'S ARE ACTUALLY SAVING
MONEY.
EVEN AFER ACCOUNTING FOR
INDUSTRIES COMPLIANCE COSTS AND
WITH SMART PROTECTIONS LIKE OUR
CLIMATE CREDIT WOULD PROVIDE A
LUMP SON BILL --
TO ALL HOUSEHOLDS IN CALIFORNIA
INDEPENDENT AND NOW HE'S OF
SHOWN THAT IS ACTUALLY ALLOWING
LOW INCOME HOUSEHOLDS TO BENEFIT
FINANCIALLY FROM OUR PROGRAM.
THANK SHOULD PROVIDE SOME
COMFORT THAT WE NEED TO MOVE
FORWARD AGGRESSIVELY AND THAT WE
CAN DO SO NOT ON THE BACKS OF OF
LOGAN CALIFORNIA SO YES WE NEED
TO RAISE OURS.
OUR AMBITION BUT REALLY THE PATH
WE CAN LEAST AFFORD IS DOING
NOTHING YEAH.
YEAH GREAT OKAY THANK YOU.
GOOD AFTERNOON MR MY NAME IS THE
BILL QUINN I'M THE THE PRESIDENT
SINCE BEGINNING WITH YOUR OF THE
CALIFORNIA COUNCIL FOR MY
MONIQUE MY BALANCE ARE KNOWN AS
C..
R. C. WAS A COALITION OF
BUSINESS LABOR IN PUBLIC LEADERS
BEEN HERE SINCE THE BEGINNING OF
THE CLIMATE DISCUSSION WORK ON
AB THREE TO SB THREE TO A. B..
THIRTY THREE NINETY EIGHT THE
SCOPING PLAN.
OF APPRECIATE THE DISCUSSION
TODAY BUT GIVEN THE TIME WHAT%
I'D LIKE TO DO SIMPLY OFFER TO
MEET WITH YOU. TO SIT DOWN AND
GO THROUGH THE LAW OF THE VIEWS
OF THE CLIMATE OVER TO COME
COMPLIANCE ENTITIES AND THEIR
UNIONS ON THE STATE'S PLAN A
PROGRAM.
THANK YOU THANK YOU. TO GO OUT
FOR THE CALIFORNIA MISLI TILDES
ASSOCIATION REPRESENTING OVER
FORTY PUBLICLY OWNED ELECTRIC
UTILITIES IN THE STATE WE
SUPPORT A COMPREHENSIVE APPROACH
APPROACH ACROSS SECTORS TO
ACHIEVE GREENHOUSE GAS
REDUCTIONS.
EL KNOWIT'S BEEN SAID OF A FEW
TIMES IN THIS HEARING THAT THE
LECTURE SECTOR IS REALLY LEADING
THE WAY ON EMISSION REDUCTIONS --
THERE'S A SECTOR SPECIFIC GOAL
OF 72% --
EMISSION REDUCTIONS BY TWENTY
THIRTY AB AFFORDABILITY FOR OUR
MEMBERS IS A REALLY BIG ISSUE WE
FEEL LIKE WE CAN.
BE SUSTAINABLE AND REDUCE CARBON
EMISSIONS WHILE KEEPING ELECTRIC
RATES AFFORDABLE A LOT RESTS ON
THE ABILITY OF ELECTRIC RATE
ELECTRIC PROVIDERS TO PROVIDE
ELECTRIC ELECTRICITY AT
AFFORDABLE RATES.
ROLLOUT OF UBS FOR EXAMPLE AND
WE APPRECIATE YOUR ATTENTION
THAT CONCERN THANK YOU AND HAVE
INFRASTRUCTURE.
YEAH OKAY THANK YOU.
ERIN WITH UNION CONCERNED
SCIENTISTS --
I APPRECIATE YOU HAVING THIS
HEARING TODAY JUST A COUPLE
CONSERVE OUR COMMENTS FIRST WE
SHARE THE CONCERN THAT AN ACCESS
A BANK ALLOWANCES IN THE CAP AND
TRADE PROGRAM.
BECAUSE EMISSIONS TO EXCEED
CALIFORNIA'S LEGALLY BINDING
TWENTY THIRTY LIMóN AS OTHERS
ARE PREVIOUSLY NOTED ABILITY TO
BANK ALLOWANCES USE IN THE
FUTURE MEANS THAT CAP AND TRADE
PROGRAM PROVIDES A HARD CAP ON
Q. MOTHER THE MISSIONS.
OUT TO TWENTY THIRTY NOT A HARD
CAP ON MISSIONS IN TWENTY THIRTY
INCREDULOUSLY DURING CARP TO
CONTINUE TO EXPLORE THE REST AN
OVERSUPPLY OF ALLOWANCES WILL
UNDERMINE THE CAP AND TRADE
PROGRAMS INTENDED ROLE AS A
BACKSTOP TO ME TWENTY SB THIRTY
TWO LIMITS --
AND THEN I WANT TO RETURN TO A
POINT THAT DOCTOR BROWN MADE N
HIS REMARKS REGARDING THE USE OF
CARBON PRICING VERSUS
COMPLEMENTARY POLICIES YOU SEE
US FOR SUPPORT CURRENT PRICING
IS IMPORTANT TOOL.
REDUCING CRIME AT POLLUTION BUT
WE BELIEVE IN EVEN MORE STRONGLY
IMPORTANCE OF MAINTAINING
CALIFORNIA'S COMMITMENT OTHER
FOUNDATION OF POLICIES THAT
REDUCE EMISSIONS FOSTER
INNOVATION IN NEW TECHNOLOGIES
AND PRODUCE VALUABLE COULD
BENEFITS. FOR COMMITTEES ACROSS
STATE THINKING.
YEP YEP ALL SET THE I JUST
WANTED TO GO BACK ALSO TO
SOMETHING DOCTOR BROWN TALKED
ABOUT THE LA OVER FOUR EIGHT
KNOWLEDGE IS THE IMPORTANCE OF
FEELING OF EMISSION REDUCTIONS --
AND THAT'S REALLY WHAT THE
ATMOSPHERE CARES ABOUT AND RAN
REALLY ESSENTIAL TO ACHIEVING
OUR CLIMATE AND PULLS WRIT LARGE --
WE SEE BANKING ACTUALLY IS AN
IMPORTANT WAY TO HELP ACHIEVE
EARLY EMISSION REDUCTIONS WHICH
ARE OF COURSE ESSENTIAL TO
GREATER CUMULATIVE EMISSION
REDUCTIONS --
SO SO I THINK THAT POINT NEEDS
TO BE REALLY CLEAR THAT TAT
BANKING DOES INCENTIVIZE THOSE
REDUCTIONS AND AND THAT'S REALLY
IMPORTANT.
AND SO WE SEE THAT THE BANK OF
ALLOWANCES.
SET YOUR OF YOUR WHAT ARE
DISCRIMINATION OCCURS IT BECAUSE
THEY SURE I MEAN THAT CONCERN I
I'M MY BEST UNDERSTANDING THEIR
CONCERNS THAT.
IT'S JUST BEEN A FOR YOUR FOR
FOLKS.
TO SORT OF BY A CREDITS INTO THE
FUTURE AND AND SO.
SURE SO HOW WE SEE IT IS THAT OF
ALLOWANCES PURCHASE NOW AND NOT
USE NOW REPRESENTS A TON OF THE
MISSIONS IS NOT EMITTED NOW SO
THAT IS THERE FOR LESS TIME.
MEAN DECADES IN THIS CASE AT
THAT TIME ISN'T DAMAGING THE
ATMOSPHERE --
BUT I THINK THERE'S A YOU KNOW
OF THE FURTHER POINT THAT BY
HAVING THIS MAN OF ALLOWANCES.
OF THIS ALSO REALLY INCENTIVIZE
IS CALIFORNIA TO ACTUALLY TAKES
STEPS BEYOND TWENTY TWENTY OR
TWENTY FIVE THIRTY AND SET
TARGETS FURTHER OUT --
THE BANK OF ALLOWANCES MIGHT BE
A GREATER THREAT IF WE KNEW THAT
CAP AND TRADE WAS GOING TO END
IN -- TWENTY
THIRTY BUT I DON'T THINK THAT
THAT'S GOING TO YOU KNOW I'M
ENOUGH OF AN OPTIMIST NOT TO
BELIEVE THAT THAT'S GOING TO
HAPPEN SO I THINK IF WE LOOK OUT
PAST.
TWENTY THIRTY THAT WOULD
ELIMINATE SOME OF THOSE CONCERNS --
AND I THINK THE LAST POINT I
WANT TO MAKE RATE IS NOT THE END
ALL BE ALL TO MEETING OUR
CLIMATE GOALS THERE'S A LOT MORE
AT THAT THE STATE CAN BE DOING
AN ETF IS REALLY INTERESTED IN
SCENES STATE TO MORE ON HEAVY
DUTY ELECTRIFICATION BUILDING
THE CARBONIZATION.
PRODUCING METHANE EMISSIONS THAT
SORT OF THING YEAH.
YEAH YEAH MAKES MUCH ALL RIGHT
THANK YOU EVERYBODY REALLY DO
APPRECIATE AYE AYE THING AT THE
THOUGHTFUL AND AND AND AND
IMPORTANT DISCUSSION AND AND YOU
KNOW LIKE THE LIKE ALL THE BEST
HEARINGS.
THEY OFTEN LEAVE MORE QUESTIONS
THAN ANSWERS OF BUT I DO BUT
I'VE I DO WANT TO PERSONALLY
THANK ALL OF THE PANELISTS IN
THE AND THE FOLKS WHO JUST CAME
IN TO SPEAK.
I KNOW HOW MUCH WORK GOES BEHIND
THESE PRESENTATIONS AND AND AND
ALL THE OTHER DAY REFLECTS OF
THANK YOU TO YOU THANK YOU TO
OUR STAFF --
AND WITH THAT THIS HEARING IS
ADJOURNED