Transportation Politics and Policy

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+ + + + + + + Transportation Politics and Policy Nick Nigro Solutions Fellow Pew Center on Global Climate Change TRB Environment and Energy Research Conference June 9, 2010

Transcript of Transportation Politics and Policy

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Transportation Politics and Policy

Nick Nigro

Solutions Fellow

Pew Center on Global Climate Change

TRB Environment and Energy Research ConferenceJune 9, 2010

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Presentation Overview

• Basics of Climate Policy

– All Levels of Government Play a Role

– Need for Complementary Policies

• Reducing GHG Emissions From Transportation

• Climate Change Politics

– Debate at the Federal Level

• Kerry-Lieberman Bill

– Transportation coverage and impacts

– Waxman-Markey comparison

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Basics of Climate Policy

All Levels of Government Play a Role, Need

for Complementary Policies

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Multi-level, Multi-pronged Approach

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City State Regional Federal International

Cap and Trade

Tax Policies

Land Use/VMT

System Efficiency

Tech Transfer

Low-Carbon Fuel Standard

Vehicle

Standards

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Recent State Action

January, 2010

•RGGI working on LCFS framework for 2011 per MOU

•CA adopts LCFS to start in 2011

March, 2010

•WV passes anti-idling law for trucks

•OR requires GHG reductions in transportation planning

May, 2010

•MD passes tax credit for plug-in electric vehicles

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US GHG Cap-and-Trade Programs

• 23 states participating in/developing cap-and-trade

• These states emit ~37% of total US emissions

• Three regional cap-and-trade programs

• Three regional initiatives are collaborating on cap-and-trade

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Participant

Observer

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Abatement From Waxman-Markey

Source: U.S. EPA

Transportation

needs more than

cap-and-trade

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Reducing GHG Emissions From

Transportation

Fuels, Vehicles, Vehicle Miles Traveled,

System Efficiency

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GHG Emissions From Transportation

• 27% of total GHG

emissions in U.S.

• Over 85% of

transportation GHGs

are from surface

transportation

• Almost all

transportation GHGs

are from fuel

combustion

Passenger

Cars

34%

Light-Duty

Trucks

29%

Medium-

and

Heavy-

Duty

Trucks

21%Aircraft

8%

Other

8%

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Transportation Policy Options

• Fuels– Covering fuels in cap-and-trade

– LCFS

• Vehicles– CAFE

– GHG Standards

• VMT– HOV lanes, carpooling, transit

• System Efficiency– Public spending on smarter transportation

system

Transportation GHG

Reductions

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Fuel Policy Options: Low-Carbon Fuel

Standard

• Carbon intensity standard for fuel

lifecycle

• Creates a market for low-carbon fuels

– Gasoline, biofuels, electricity, natural gas,

hydrogen, etc.

• Allows credit trading

• California’s LCFS will reduce intensity by

10% below 2010 levels by 2020

– Reduce GHG emissions by 15 MMT in 2020

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Importance Of A Global Perspective

0

100

200

300

400

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700

India China Brazil U.S.

Millio

ns o

f C

ars

2000

2030

2050

Source: Goldman Sachs

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Climate Change Politics

Debate in Washington

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Climate Bill Status In Congress

House

• Waxman-Markey passed in summer of 2009, 219-212

• 8 Republicans voted for legislation, 44 Democrats voted against

Senate

• Kerry-Lieberman or other climate/energy legislation

• 60 Senators needed including Republicans

• Needs Administration support

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Debate in Washington

• “Climategate” fueled opposition

• Weather ≠ climate

– DC snow storms and Al Gore’s Igloo

– Recent NAS studies reaffirm science

• Term cap-and-trade is out of favor

– Kerry-Lieberman has many elements from Waxman-Markey

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Kerry-Lieberman Bill

Coverage and impacts on transportation

and comparison with Waxman-Markey bill

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Transportation GHG Coverage

• Covers almost all transportation sources

– 93% or 1760 MMT of CO2e of GHG emissions from transportation in 2008

– Excludes ships and boats, pipelines, and lubricants

• Allowances for refined product providers set aside by EPA for transportation quarterly

• Allowance price set quarterly by EPA equal to auction clearing price

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Transportation GHG Programs

• About 2/3 of transportation funds focused on GHG reductions

• HTF funds must consider GHG reductions

• Targets and strategies required by states and MPOs

• Clean Vehicle Technology Fund

– PEV pilot, manufacturing, infrastructure

• Natural Gas Vehicle Support

– Includes light-, medium-, and heavy-duty

– Tax credits, bond program, research

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Allowance Allocation

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

% o

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llo

wa

nce

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TIGER Grant Program

States & MPOs to reduce

GHG emissions

Highway Trust Fund

Clean Vehicle Technology

Fund

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W-M/K-L Comparison on Transportation

W-M

• No set-aside allowances

• Allowance value distributed to advanced auto technology

• Support for PEVs (funded)

• Support for MPOs (unfunded)

• Require GHG standards for heavy-duty vehicles through EPA

K-L

• Set-aside allowances

• Allowance value to HTF, states and MPOs, clean vehicle fund, and deficit reduction

• Support for PEVs, MPOs, and HTF (funded)

• Support for NGVs (unfunded)

• Require GHG standards for heavy-duty vehicles through EPA

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For More Information Visit

www.pewclimate.org