September 10, 2007
In response to a California Energy Commission request, the Coalition has submitted a list of policy priorities for inclusion in the AB 1007 plan to increase alternative fuel use in the state.
Coalition President Mike Eaves notes that some of the NGV industry’s priority initiatives would benefit all alternative fuels. And all initiatives require near-term action: “The CEC wanted near-term, midterm, and long-term priori-ties, but if we can’t get the near term right, there won’t be a long term.”
The Coalition’s recommendations are:
Create a Level Playing Field The state must educate Californians about state goals and the need for alternative fuels in achieving them, and promote the fuels that are available to create a level playing field. In addition, the state should exclude natural gas used in the transportation sector from any emission caps for natural-gas power generation established under AB 32.
Allow Utilities to Support GHG and Fuel Diversity Goals The California Public Utilities Commission should establish the policy framework and program guidelines for reinvigorated and aggressive low-emission vehicle programs implemented by California public utilities. In addition to addressing traditional and expanded LEV program elements, the initiative should ensure the utilities’ gas and electric AFV rates encourage rapid development of AFV markets and provide incentives for AFV market development beyond baseline levels.
Build Strategic OEM Alliances The governor, state agencies, California’s natural gas utilities, and other stakeholders should meet with vehicle OEMs and request that they work with California to reinvent OEM NGV programs to meet the state’s needs for a range of light-, medium-, and heavy-duty NGVs. In return, the state should guarantee vehicle purchases and commit to expanding the natural gas infrastructure. As part of this coordinated effort, the state should require the Department of General Services to include all known AFVs (NGVs, propane, electric, and so on) on the state bid list and solicit bids for these vehicles. This will allow municipalities to purchase vehicles at competitive prices.
Include All On-Road Vehicles in the Low Carbon Fuel Standard The CEC’s analyses demonstrate that heavy-duty NGVs can make a substantial contribution to reducing greenhouse gas emissions as well as petroleum use, but discussion of the LCFS to date has focused exclusively on the light-duty market. Market growth for NGVs across the range of light-, medium-, and heavy-duty applications could be significantly higher if mechanisms were put in place to recognize these benefits and allow the generation of greenhouse gas credits for banking or trading in California.
Coordinate State Investment in RD&D To obtain maximum value from state investment in research, development, and deployment of AFVs, the state should coordinate research efforts authorized by legislation such as the pending AB 118 (Núñez) with industry stakeholders, such as public utilities.
Reassess State Air Quality Programs and Fleet Rules The state should review major existing air quality programs (including Carl Moyer) to deter-mine if criteria such as greenhouse gas reductions, carbon intensity of fuel, or petroleum reduction should be included.
CARB fleet rules should be evaluated periodically for compliance. For instance, in 2010, diesel engines must achieve the EPA’s 2010 heavy-duty standards (already achieved by natural gas engines), and CARB’s transit bus rule requires that those low-emission engines be purchased in 2010. However, the diesel industry has missed or ignored several CARB compliance dates. If this happens again, CARB should eliminate the diesel pathway for public transit agencies. CARB should also consider integrating petroleum reduction into its current fleet rules.
Participate in Federal Energy Policy Debates The governor and state agencies should lobby the California delegation in Washington to support clean alternative fuel initiatives like the extension of the NGV federal fuel tax credits, federal vehicle purchase credits, federal alternative fuel standards, and Department of Energy budgets for NGV RD&D. The state also needs to play an active role in seeking inclusion of natural gas as a clean alternative fuel in the House-Senate energy bill and upcoming climate change bills.
Courtesy of CNGVC, www.cngvc.org.