California’s convoluted ties to petroleum

Publication Date
Source
Central Valley Business Times
Year Published
2013

• New study highlights connections between seemingly unconnected policies

• “There are many options for reducing emissions in the state”

California policies that have that at first glance seem to have little to no connection to petroleum use actually provide incentives that drive demand for oil use artificially high in the state, according to a new report from the nonprofit, nonpartisan group Next 10.

Fifteen such policies are identified in its new report, “Unraveling Ties to Petroleum: How policy drives California's demand for oil,” released Wednesday night by Next 10 and authored by UCLA experts.

“Under California’s landmark climate and energy law, AB 32, the state is obligated to cut carbon emissions significantly through the year 2020,” says Noel Perry, a California entrepreneur and founder of Next 10. “We want to show Californians that there are many options for reducing emissions in the state – including looking at existing policies and how they might inadvertently increase our demand for fossil fuels.”

(Noel Perry talks about the report, what prompted it and what it might engender in today’s exclusive CVBT Audio Interview. Please click on the link below to listen now or to download the MP3 audio file at no charge.)

Petroleum accounts for the greatest total share of California’s energy demand, supplying 43.7 percent of the state’s energy needs, the report says.

It has 15 separate policy briefs that focus on policies affecting California’s transportation sector. The transportation sector accounts for nearly 40 percent of the state’s energy consumption.

“Although … disincentives to cut our oil use have a powerful impact on our consumption, there are state and federal incentives that are already encouraging some of the recommended changes we highlight,” says report author Juan Matute, who is also director of the UCLA Local Climate Initiative. “The state is now developing new incentives for rideshare and there are also policies driving the proliferation of alternative fuel vehicles.”